On TWI basis USD has 20% upside in current circumstances. Sure next year could be awful for USD but all of the arguments today combine towards short term bullish. This cycle has unique features - for the USA and for the world as a whole.
It’s time to start loading up on “cheap” yen. Using options to bet on gains for Japan’s currency is a smart wager for 2019, according to Societe Generale. The dollar rose to about 114 yen Thursday in New York, its strongest since early October, extending its advance after the Federal Reserve left rates unchanged and stayed on course to hike next month. The dollar set a 2018 high of about 114.50 yen on Oct. 4, which the bank cited as an area of technical resistance. “On top of being a good entry point to buy yen, we think investors should consider rising risks of a sharp yen bounce in the medium term,” Olivier Korber, a currency ... (full story)