The FOMC is about to start its policy tightening, and market participants seem to be divided on the direction of the dollar. A Bloomberg analysis piece noted several factors serving as headwinds for the dollar
Seasonality is set to kick in after mid-March, this does not favour upside in USD.
Volatility measures are falling on the session, the VIX closed below 30 for the first time in 11 sessions and now tests < 27.0
Bloomberg reports hedge funds trimming EUR/USD short positions
A measure of dollar, BBDXY, tests a key Fibonacci level at 1,205.19 (50% Fib)
Volatility Indexes:
VIX
JPM FX Vol Index
BofA Move Inex
Dollar Seasonality:
Dollar Index:
Testing Key Retracement
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