USD likely to stay bid through the holiday period
- Most of the big recent moves have been in the crosses but the USD is looking increasingly likely to enjoy an end-of-year surge;
- EUR, GBP and CHF have made strong gains in recent months and could easily enter a period of consolidation;
- Most of the USD gains have been coming against the AUD and the JPY, and the CAD and NZD may soon start to play catch-up;
- Tapering is most likely to begin in January but some token effort is certainly possible next Wednesday.
I’ll run through the individual currencies over the next few hours but from a risk reward standpoint, long USD/CAD and short NZD/USD are looking favourable.
Good luck today, and TGIF even if it’s Friday the 13th.