Citi trade of the week: Buy NZD/JPY

The latest trade idea from Citi

Currency investors should consider buying NZD/JPY this week, advises CitiFX Research in its weekly FX pick.

Citi recommends buying NZD/JPY around 79.08 with a target of 80.75, and a stop of 78.00

"We believe the timing is right to fade politically-motivated NZD weakness since the market's worst fears on potential policy shifts do not appear to be playing out.

...A more benign-than-expected transition in government should open the door to NZD-positive rises in rate expectations ahead of the November RBNZ meeting, since it looks likely that inflation forecasts will have to be revised higher following the recent CPI reading," Citi argues.

If you're wondering how last week's pick went...not very well.

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