5 days ago • Posted by Paul de La Baume
USDCHF reversal. #dollar comes back like clockwork. #trading #forex #fx $SPY $QQQ
The dollar is coming back as predicted in light of still very attractive yields versus the Swiss franc or the euro. The reversal today is triggered or accelerated by worries about Credit Suisse, but really it is simply a reversal of flows that have sold off the dollar recently. Interestingly, 2-year US Treasury yields are diving 18bps today, and the dollar index is still up 0.9%! The USDCHF had a strong bounce off its support at around 0.91. Traders could expect it to revisit 0.93 - 0.93.5 or possibly stay at these levels, but a sudden drop is unlikely given the sticky US core inflation and wide yields differential with the CHF.
