EUR

Exclusive USD - is the rally over?

The USD is the worst performing G10 currency on a 5-day view, with the DXY dollar index having lost around 2% since its late July levels.

Exclusive EUR/USD - wary

The USD has benefitted from a combination of safe haven flows and hawkish expectations regarding the Fed.

EUR - reality check

In our view, the market is likely to be reluctant to rebuild large, long positions in the EUR in the months ahead.

We maintain the view that EUR/USD will struggle to regain the directional uptrend that was in evidence for much of last year

This month the DXY dollar index has traded at its highest levels since last spring, which begs the question of whether the greenback has entered into a cyclical upswing.

Exclusive USD - haven or currency of choice?

Over the past few months, the USD has been driven both by safe haven flows and by a change in market expectations regarding Fed policy.