Forex Flash: Defensive and relative-value trades ahead of key events – JP Morgan

FXstreet.com (Barcelona) - JP Morgan analysts recommend a mixture of defensive and relative-value trades "as a wide range of metrics point to confidence verging on complacency about economic and policy risks in Europe, China and the US", although "everything could turn out alright everywhere", wrote analyst John Normand, pointing to a scenario "already priced into FX".

PMIs in Europe and China and the Eurozone meetings are key this week, but Fed's Bernanke speech at Jackson Hole on August 31 and the FOMC are the big events for the trades. "To limit concentration to the big issues, hold macro and policy RV trades in GBP/NOK (short cash) AUDNZD (put fly) and NOK/SEK (call spread)", added Normand.