All posts are my personal opinion
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A Few Brief Comments on the Technical Condition of the Dollar
Driven by the real and anticipated divergence in economic performance and trajectory of monetary policy, the long anticipated US dollar recovery has begun. As is evident in the positioning of the futures market, and confirmed by anecdotal evidence, speculative participants have amassed a significant large US dollar position. Broader measures of portfolio flows are less timely, but those that track mutual fund and ETF flows also report foreign demand for US assets. The two knocks against the currency market have been the lack of follow through and the low volatility. The former has been exaggerated, and the latter may ... (full story)