TD Research discusses the current market conditions and sees choppy trading and moderate USD buying in the near-term.
"We think choppy market conditions are likely to remain in place for now as investors navigate a series of cross currents this week. Continued low vol could encourage flows into EM carry trades and the like. A different dynamic may play out in G10 FX as positioning risks remain amid increasingly stale USD shorts," TD notes.
"We think the USD should find moderate buying interest as investors may dial back further on risk allocations in the weeks ahead," TD adds.