Nearly all analysts expect USD to extend its losses, which is dictated by the political uncertainty about Donald Trump's policies. Obviously, investors concerns have shifted from Europe to the United States.
Recent retail sales data and inflation from the USA will make it tougher for the Fed to hike rates soon, and this is already trading and is negative for the US dollar.
The net long positions by USD show a bottom reached since September 2016. This shows that investors' attitudes towards purchases of USD are negative.
The EUR increase is also expected to continue, which will further drag the dollar down.
We currently remain short on USDJPY, long on EURUSD, and we will add new positions after each corrective movement while sentiment remains negative.
Trader Nikolay Georgiev
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