The following are UBS' latest short-term (mostly intraday) trading strategies for EUR/USD, USD/JPY, and GBP/USD.
EUR/USD: trading has been rangy and should continue to be given the lack of data until the ECB's meet/ing on Thursday. We prefer selling rallies towards 1.1400/20.
USD/JPY: The ECB meeting on Thursday is the main event this week, so we expect range trading ahead of it. We prefer to play USDJPY and EURJPY from the short side, as we have already seen a fair bit of a retracement since last week's lows of 118 and 134.80 for the pair and cross.
GBP/USD: Cable is trading just below 1.5500. The break last week was short-lived, but the pair looks likely to trade higher and a test of the high is a possibility. It will be a quiet data week, with only UK retail sales on Thursday. We prefer buying dips below 1.5400, with a stop at 1.5370/65.
