Amid Consensus 'Unrelenting Depreciation', Options Traders Lift Foot Off Dollar Dumpfest

With the dollar trading a three-year lows, and consensus growing shorter and shorter the greenback, FX options traders appear to have hit pause on their downside bets.

Goldman Sachs Mike Cahill sees three main factors behind the bearish Dollar outlook:

• First, the maelstrom of US policymaking weighs on activity and risk-adjusted return calculations, which both undermine the case for continued over-allocation to US assets.