The dollar could be setting for strength ahead if it trades in line with its historical pattern. Looking back into 2022, the dollar recorded gains 20-days following the VIX crossing below 20.0
From January 2022 to date, the VIX has breached the level 12 times, the Cable FX Macro Dollar Index <.RDDXY> saw strength 11 times after the drop in the volatility gauge
The average of the upside events in the <.RDDXY> stands at 2.97%. The maximum change saw the dollar rising by 6.11% 20-day after the VIX crossing 20.0, the downside maximum was -1.73%
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