The clearing out of stale dollar long positions over the last few weeks appears to have allowed the greenback to stabilise somewhat after its sharp sell-off so far in March.

We saw truly massive shifts in the FX market last week, with moves not seen since the early chaotic days of the COVID-19 pandemic.

We saw truly massive shifts in the FX market last week, with moves not seen since the early chaotic days of the COVID-19 pandemic.

A rather anodyne week in currency trading ended in a dollar buying frenzy on Friday.

A rather anodyne week in currency trading ended in a dollar buying frenzy on Friday.

For the first time in a while, most of the major currencies traded in tight ranges last week, with the exception of the yen, which continues to rally amid rising expectations for a faster pace of Bank of Japan policy normalisation.

The US dollar is weakening amidst negative economic news, while the yen rallies on BOJ policy normalization expectations. This week's focus: US PCE inflation, central bank speeches, and geopolitical developments including Trump's impact on European security and the German election. Will the dollar's weakness persist?

This blog exposes five prevalent FX and hedging myths that can hinder your risk management efforts.