The US dollar is an unstoppable machine today, cutting to recent highs against almost everything despite a almost no newsflow. It has the feeling of some major asset re-allocation away from emerging markets and the commodity countries and into the USA.
I believe it’s a move that could run. One trade in particular that’s looking attractive is USD/CHF. It broke above the March highs on Friday and looks poised for a run at 100.
The main risk for the US remains the sequester but at this point it’s a one-way risk. If they fail to make a deal, the US dollar slowly creeps higher; if they make a deal it surges.