💵Dollar Ranges Tend to Decline Into Month End: Cable FX Macro
- Rosbel Durán
- May 8
- 1 min read
Our measure of the dollar shows larger ranges during the first two weeks of the month before shrinking. Over the last six months, the fourth week of the month is showing the lowest average move.
There could be several reasons behind this pattern, but this is mostly reflecting a dollar reactive to data releases. Most tier-1 data releases from the U.S. are piled into the beginning of the month.
This is important to keep in mind when setting targets and S/L. And given the composition of our dollar index, this could be interpreted as a benchmark for broad G10FX trading. Weighs in the Cable FX Macro Dollar Index are more normalized than in trade weighted indexes.
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