USD has remained subdued yesterday but it gains after the European open. It seems like the UK desks are pushing the greenback against the majors, after a long Easter weekend. We’ve already pointed out the possibility of an exaggerated reaction to yesterday’s data and indeed there is some correction.
We are overall moderately bullish on the USD and with stocks so high and markets so dovish there is a possibility of a short squeeze (shorts on USD have significantly increased as one can see in the most recent CFTC data) with a moderate tone
Source: Bloomberg, the most recent CFTC positioning on USD