Rates and yields are in the driving seat – and that is a problem, in the view of Kit Juckes, Chief Global FX Strategist at Société Générale.

Too many Euro longs

“The relationship between relative rates and the Dollar has been repaired in recent years after a complete falling-out at the end of 2016, and if the data continue to push back against expectations of Fed easing this year, the Dollar’s going to continue to find support (even if I think it's fundamentally expensive here).” 

“CFTC positioning data don’t tell a new story this week, either. As of last Tuesday, the market remained significantly short of the Dollar, and particularly long EUR/USD.”