US dollar on the defensive

Dollar slides across the board

You would be hard pressed to find a currency that's softer than the US dollar today. It's a significant laggard in the G10 space and only a handful of emerging market currencies are slightly softer than USD (ARS, MYR, KRW).

One of the catalysts is the rising potential for US stimulus. It's a bit counter-intuitive but US spending boosts global growth and that means money parked in US dollars (or borrowed in USD) tends to flow back home or abroad, where asset prices are lower.

The euro is threatening to extend its breakout and USD/JPY is at a one-month low:

Dollar slides across the board

As always, in FX the trend is your friend and the best trend out there is USD weakness. Take your pick on which currency you want to bet on but

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