Yesterday SocGen was out with a call for USD/JPY to fall to 110.00 and now they're doubling down on the case for broad USD weakness.
They suggest selling the US Dollar Index (DXY) with a target at 95 and a stop at 110.
"The DXY has retraced 40% of the up-move since spring 2021, and we expect more. The dollar has played Grinch as COVID and then the Russian invasion of Ukraine hit the global economy and financial markets. But the pandemic is apparently in the rear-view mirror, and while there is still a clear threat to European growth and stability from the war, that risk is decreasing," SocGen notes.
"In the near term, year-end optimism and position adjustments can give DXY shorts a strong start before trading likely becomes choppier," SocGen adds.
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