USD on a roll? – BBH

The US dollar turned in its best week so far in 2018, even though the Swiss franc and euro extended their weekly advances for a seventh and four week, respectively, notes the research team at BBH.   

Key Quotes

“The jump in yields and retreat in equities suggest a larger portfolio adjustment and not simply a short-covering bounce in the dollar.  The price action in the days ahead is key to verification.”

“The Dollar Index rose for the first week since the weekend ending December 15.  The 0.15% gain is nothing to write home about, but the sharp downside momentum has been arrested.  A shelf has been carved in the 88.40-88.55 area.  Initial resistance is seen near 89.65.  A convincing break gives it potential toward 90.85-91.00.  The technical indicators are constructive, with the RSI moving higher, the MACDs about to turn up and the bullish divergence in the Slow Stochastics remains intact.”