COT: Dollar, VIX bought ahead of last week's turmoil
Leveraged funds scooped up the USD and VIX futures alike ahead of last week's equities selloff, while remaining unconvinced of the bullish oil narrative.
The dollar is undergoing a major rally, or short-squeeze, with the Dollar Index heading back into positive territory for 2018 on May 1.
One key test of this trend will be today's Federal Open Market Committee outing. Markets do not expect any sort of policy move, but the reaction to the Fed's statement as investors pore over each and every potentially significant turn of phrase could be revealing as to the real level of confidence behind the USD surge.
Join Saxo Bank head of FX strategy John Hardy as he outlines the potential for post-FOMC volatility.