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The US dollar found buyers today after shrugging off the Federal Open Market Committee minutes last night, which largely merely confirmed the Fed’s intent to stand pat on the rate outlook until incoming data and/or market turbulence indicate otherwise.
The anticipation and now reality of a long Brexit delay has seen collapsing implied volatility for sterling options and the sharp weakening of the Swiss franc in recent sessions may be linked to the same phenomenon.
We highlight the USDCHF trading at new 19-day highs since yesterday in our signal tracker today. Elsewhere, we’re more interested in adding to USD longs in the form of a NZDUSD short if that pair trades below the 19-day and 49-day low closes, which are in play already today. Breakout signal tracker
With G10 small currencies offered today and a suddenly resurgent US dollar, our confidence in the EURNOK short has dropped sharply, but we’ll leave it in place for now. We also add a USDCHF long at the current market price with a rather wide stop in ATR terms due to very constricted recent trading ranges.