The fall in the USD against Yen and Euro has definintely been weird, especially since the enormous fall in US10 year yields. I can only imagine it is the unwinding of US equities investments and repatriation of cash to EU and Japan which has caused the falls. At some point these investors are going to need to return to invest in US as returns in Japan and EU are pathetic. This will drive the DXY in the reverse direction.
We have seen DXY bounce of this region three tomes now as indicated by the chart. This is a low risk high reward trade, if you place a stop just beneath. Get the USDs while they're cheap.
We have seen DXY bounce of this region three tomes now as indicated by the chart. This is a low risk high reward trade, if you place a stop just beneath. Get the USDs while they're cheap.
Comment:
Thankfully this trade never activated. Watch for slowing momentum. There will be a return to USD inevitably.