The $US continued its descent last week without the tailwind of falling bond yields, an encouraging sign for the bears like MM. There is no change; if we are correct, the Greenback has formed a significant swing high and will test/break the important psychological 100 area. Our preference is the next 10% move by the $US is down, but at this stage, it does remain in the middle of the last 12-months trading range.
- We remain net bearish towards the $US, but downside follow-through by bond yields may be required before the Greenback can break 2023 lows.
MM is bearish toward the $US over the medium/long term.
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The Pound has bounced strongly from its 1.20 support area and remains on track to follow the MM roadmap and test its 2021 high through 2024, a bullish read-through for resources and especially precious metals.
- We remain bullish towards the Pound with an initial target around the 1.40 area or ~10% higher.
MM is bullish toward the Pound in the medium term
