The majority of forecasters are bearish of the USD, but the USD is trading above recent lows and looks set for a big move higher in our view.

For a summary of the fundamentals in terms of the DX,Y check out are article from earlier in the week: CLICK HERE

Charts and Comments

The market still remains heavily short of the USD and investors are significantly underweight the USD.

If you want to buy tech stocks in the US, you need to buy dollars, and the gap is very wide...

Economic surprises and the USD, we would expect the gap to close to the upside.

A chart pointing to the USD bearish extreme peaking...

Will we get three interest rate cuts from the Fed? We think this is optimistic if we look at inflation.

We saw a big drop in yields last week as the market moved to discount 3 x interest rate cuts of 25 bps by the Fed, but we are now moving to the upside and looking for more strength in the bond market to underpin the USD.

DXY bouncing on the short-term trend line. Momentum is still not great, but note the 21-day is crossing the 50-day. Last time this occurred, the dollar caught strong bids. (THE MARKET EAR) The second chart is our view of the key levels in terms of getting long and in terms of stop.

Final Words

The market sees a bearish USD, but it's well off its lows, and after Friday's sharp sell-off, we are firming up with the market short and underweight USD, and the bearish fundamentals discounted, we would expect a significant bounce to the upside. Check out our view of individual currencies v the USD CLICK HERE TO VIEW