Dealers and traders are now looking at the USD-rally of last Thursday as an aberration and they unanimously expect the USD fall to continue at a steady pace.
I am of the opinion that one needs to picks ones horse carefully in this USD-bear race. I think that the AUD and the EUR are overbought at current levels and may settle into broad ranges for the remainder of the year- AUD/USD .88/.95 ish and EUR/USD 1.46/1.53 ish. I think there may be a lot more value for money in being long cable with a move towards 1.80 looking possible to me. USD/JPY remains the great unknown and whilst I’m bearish, the moves are too slow for my impatient palate.
