The US dollar has been on the back foot, especially against the safe-haven Japanese yen. For those hanging on to the greenback, where can hope come from? Here are two opinions:

Here is their view, courtesy of eFXnews:

USD: What Bulls Need To Do Now? – SocGen

Societe Generale FX Strategy argues that USD bulls needs to respect the break-out from recent ranges and ‘sit back’ awaiting the outcome of today’s House vote.

“If the bond market rally ends here and we build a base for a new push to higher yields,. the dollar rally can resume. But we need to get away from concerns about whether Donald Trump can deliver his programme and back to the underlying economic data. It could be a range bound day all round,” SocGen adds.

Elsewhere, SocGen still likes long AUD/JPY, long EUR/GBP, and looks to buy AUD/NZD on a dip below 1.08. 

USD: Longs Need To Be ‘Very Selective’: What Is The Trade? – Standard Chartered

Standard Chartered Research notes that as the USD’s fortunes are fading on prospects for the Trump reflation trade diminish, the US government’s health-care reform bill can be viewed as a test case for the broader reform agenda.

On the FX front, Standard Chartered argues that outright USD longs should be very selective in this environment.

“In G10 FX, the broad-based USD sell-off over the past week has been most pronounced against the largest dollar longs, including the GBP, EUR and JPY. We remain bearish on all three majors, but only recommend short GBP-USD for now,” Standard Chartered advises.