USD: Remains Firmly In USD Bear Camp; What’s The Trade? – TD

TD FX Strategy Research discusses the USD outlook and makes the case for staying firmly in the USD bear camp at the start the year.

"This view continues to rest on the links between global reflation, the closure of output gaps outside the US and the ongoing regime shift in global capital flows.

For now, our outstanding trades are short USDJPY* and USDCAD*, though we continue to like using EURUSD pullbacks as buying opportunities.

EURUSD is currently trading in line with our HFFV estimates, and a break of the September high below 1.21 is needed to establish a new (higher) rang," TD advises.

Source: TD Securities ResearchOriginal Article