From the desk of Steve Strazza @Sstrazza and Ian Culley @Ianculley
We’ve been pounding the table about the broad-based strength from the US Dollar since earlier this month. Due to the momentum of its recent move, we believe this rally could have legs beyond just the near-term… But we’ll address that when the time comes.
For now, we’re positioned to take advantage of this swift rebound from the Dollar through a handful of USD crosses currently offering favorable risk/rewards.
Though the Dollar gave some of this month’s gains back last week, our short-term outlook remains higher. As I write this, many G-10 currencies like the Euro, Pound, Aussie, and Canadian Dollar are all rolling over relative to USD.
We’ll be revisiting this theme plenty as it plays out over the coming weeks to months.
But in the meantime let’s focus on a currency pair that’s bucking the trend, the US Dollar-Brazilian Real $USD/$BRL.