Blake Morrow’s Chart of The Day – Mar 18th 2021
The USD came under pressure against every major currency following the FOMC announcement as the Fed was more dovish than the market had anticipated. However, they also seem as if they are not worried about recent move higher in yields as this may be a representation of the economy building strength in the coming months. If that is the case and yields continue to rise, the USDCHF may be a “buy dip” trade below the .9200 level as we are looking at a possible bull flag pattern in the pair. The USDCHF has been highly correlated to the 10yr yields in recent weeks.