⚠️💵USD Riskies Retreat From YTD Highs: Cable FX Macro

• A Bloomberg measure of front-end dollar risk reversals is now ticking at around 11bps in favour of USD upside, this is a retreat from Monday’s YTD highs

• Options market demand for USD topside kicked in as the dollar extended gains vs peers and reached the highest since November

• Monday session gains tested the dollar’s index 100DMA. Momentum remains intact as it holds gains above its 200DMA

• Dollar’s 1m risk reversals tick at 22.4bps and compare to January’s high of 29.2bps