Currently, the market prices around 90 bps of Fed easing this year. We suspect the Fed's own forecasts – 75 bps of 2024 easing – will be the minimum amount of easing the market will now price. And that is why, we think investors and corporates should use Dollar strength this month to position for lower levels later in the year.

We have been saying this week that a low volatility environment means that breakouts should not be chased. So let's see whether DXY stays confined to something like a 103.80-104.40 range.