The US dollar's surge continues. The Dollar Index is testing the space above 93.00. A month ago it was below 90. It does not appear to require fresh developments. The market continues to trade as if there are short dollar positions that are trapped at higher levels and the briefest and shallow pullbacks are new opportunities to adjust positions. Even a rate upside surprise in European data was not sufficient to prevent the euro from plumbing to new lows for the year near $1.1880. There is a 1.1 bln euro option struck at $1.1950 that expires today that may mark the cap. There is another option struck at $1.1850 for ... (full story)