The current period of Dollar strength is triggering a bit of a bounce in volatility, albeit from very depressed levels for some pairs. I’m hoping this will give us an opportunity to get buy SEK and possibly more NOK, in the coming days. I really don’t want to get left behind, failing to take advantage of the two Scandinavians’ relative cheapness. 

I also don’t want to get left behind as EUR/GBP breaks above 0.87. Sterling’s interest rate support has been cut back and while there’s still scope for the economy to perform less badly than consensus (gloomy) expectations, that won’t prevent a gradual drift up to 0.90 and beyond over time. 

As for AUD, NZD, and JPY, all sitting at psychologically interesting levels, I don’t have the stomach to buy any of them here. 

USD/CNY is edging slowly back up and a break above early-Sep highs would spill over to the rest of the region.