The DXY or US dollar Index is often brought up as a way to play currency fluctuations, particularly as a "safety trade". In this video, I take a look at how the DXY did in the Corona Panic of Q1, 2020 and how it's done since as compared to some other individual USD pairs available in futures form. As a trend follower, I track all the major USD crosses and don't follow the DXY. I see a benefit in the diversification, and as my video shows. There are extra returns to be had both in risk off, and risk on market regimes looking at individual pairs vs DXY. @Weston Nakamura this seems right up your alley and I'd like to know what you think is the best way to play currencies in risk on/off situations.
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USDCAD channel trading has been fun in the past. Looks like it might be forming again.
I have a small put on FXC for some of the reasons listed.
Not sure about USDCAD but just started a small long dollar position via $UUP options which "tracks" DXY. From a "fundamental perspective" Trudeau certainly made it sound like the time is right but I don't know much about Canadian politics or the likelihood his plans come to fruition. Plenty of thing that could change so this is a trade I'm monitoring closely.