The US dollar is experiencing volatility which is quite unusual. Its major peers are moving up and down against it. The team at TD is bearish against the US dollar.
Here is their view, courtesy of eFXnews:
TD Research discusses EUR/USD and USD/JPY trading strategies and maintains being medium-term EUR and JPY bulls.
“We maintain our view that the next few weeks could see the dollar recover a bit, which leaves us looking to use rallies a selling opportunities. The EUR will have to grapple with German political noise and the Italian elections.
We don’t see these as major drivers, though European political events are usually worth a modest repricing of the EUR’s risk premium. Given it is running 2-sigmas from our HFFV, we look to use EUR/USD dips toward 1.21 as optimal buying opportunities.
USDJPY could also run out of gas, though we would use pullbacks toward 110 to get short,†TD advises.
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