The Greenback pulled back to the 105 area last week, led by a small pullback in bond yields following the relatively dovish Fed rhetoric and employment data. The US dollar has remained in the same 100-107 trading range for the last 18-months, and although we’re net bearish, it needs a catalyst before seeking a new level of equilibrium.
- While we still remain net bearish on the US dollar through 2024/5, for now, it looks comfortable around 105.
MM remains bearish toward the $US over the medium/long term
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Cable (The British Pound), as it’s referred to on FX trading desks, has continued to trade around its average price since BREXIT, although there have been 20% swings in both directions over the ensuing years. “Guessing” when the Pound will experience its next major move is fraught with danger, but if we’re correct, the catalyst will be a rally in bond markets (yields lower), the when being the million-dollar question.
- We’re initially targeting the 1.40 area for the Pound, and after consolidating for well over a year, a move could be in the offing at any time.
MM remains bullish toward the Pound
