The USD has been getting battered against the EUR and the CHF in the last couple of weeks. It has been a little baffling because if things are bad in the US, they're worse in Europe in terms of inflation and GDP growth.
But there are some other narratives like the China opening playing out through Europe companies, the collapse of a couple of some US regional banks etc. So which narrative will prevail?
So the latest data out yesterday has been positive for the USD and negative for the EUR and by proxy, CHF.
Inflation at 7% is still way too high for a developed market but will the EUR go through with another 75 bp of hikes? Maybe, but it will almost certainly cause a recession over there.
THE USDCHF offers some nice carry at these levels and with futures, you get to amplify those returns with leverage. Important to remember that the extra rewards are for taking on more risk.