🇨🇭LIVEDESK: USD Short Positioning Looks Light

• The dollar rallied on Friday, mostly driven it seems by month-end rebalancing, which caught the market a bit off guard. May seasonality suggests the USD may bounce back, however the market is also very aware of this and therefore USD shorts have been trimmed and positioning is accordingly light at this point.

• At the same time inflation worries are unlikely to go away and therefore the dip in assets (sell in May and go away) might not materialize this year which would also mean the USD will most likely continue to trade soft.

• Conviction level is light but the desk's bias remains to trade the USD from the short-side and reevaluate on move back above 0.9200. The short-term downtrend comes in around 0.9150 in USDCHF. EURCHF took another leg lower on Friday, selling off into the European close -- also likely driven by month-end rebalancing. These seem like good levels to establish fresh longs, the next supports are 1.0950 and 1.0920.