US Dollar Still Range Bound, But Risk Aversion Creates Bullish Potential Euro Volatility Likely as Central Bank Delivers Interest Rate Decision Japanese Yen To Strengthen As Risk Appetite Wanes British Pound May Remain Under Pressure Ahead of BoE Rate Decision Swiss Franc May Fall If Bulls Give Up Fight Against Intervention Canadian Dollar To Weaken Further As Labor Market Falters Australian Dollar At Risk as Investors Weigh Outlook For Future Policy New Zealand Dollar Selling Ahead If Stock Markets Turn Lower
• US Dollar, Japanese Yen Mixed on Low-Volume Trading • Swiss Franc Remains Range-Bound vs. Euro as Swiss CPI Signals Deflation • Australian Dollar, Canadian Dollar Retrace Some of Thursday’s Losses - Commodity Dollars Face High Event Risk Next Week
The US Dollar has been consolidating in narrow ranges against the major currencies, but positioning is favoring a stronger greenback as the breakout materializes. We maintain our short exposure against the Euro, British Pound and Australian Dollar, adding a new trade selling the New Zealand Dollar against its US counterpart.