"We want to buy DXY below 100, which means selling EUR/USD around 1.08.

USD/JPY is trickier because the yen, lacking Europe's political headwinds, is the natural hedge against trade wars. We're still convinced that here too what happens to real yields will dominate in the end, but the Washington rhetoric needs to shift to another topic before we really dare re-engage with long USD/JPY.

With real yields edging higher, the pound doesn't look a screaming sell yet (short gilts still looks like a better long-term trade than short GBP/USD to me) and the most likely outcome from here is that the last few months' 1.20-1.28 range holds. We'd prefer better levels to get short".

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