Rebuilding the USD Bull Case

The payrolls flush offers a cleaner entry into the H2 dollar pain trade

Back in April, we published Entering Dollar Doldrums, in which we discussed why we believed the US Dollar was entering a period of treading water, with strong justifications for buying dips and selling rallies.

We have now taken profit on our EUR/USD structure from this view and feel it’s time to shift to what could be the FX pain trade for H2: a stronger USD.

With the NFP-induced flush-out today providing a much better entry point for fresh capital, we talk through the rationale behind the view and believe it’s a compelling trade to take on.