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Currency Positioning and Technical Outlook: Ranges Persist, though Sterling is Exceptional
The US dollar rose against all the major currencies last week, except the British pound, which was lifted by a strong employment report and a tick up in wage growth. The greenback's gains are consistent with our caution last week against playing for a breakout as key support for the dollar had been approached. The issue remains the same for the week ahead. Assuming no exogenous shocks, such data or comments that require a significant reassessment of the macro-view, that is to say, the continued status quo favors continued range trading. In a world in which we may not have seen the peak in central bank balance sheets, ... (full story)