Futures future

Following the theme from the last couple of weeks overall USD longs have been cut. However this time there was an interesting twist. EUR and JPY shorts did not reduce but rather increase as participants thoughts switched to the upcoming Fed meeting which as we now know they held rates. Thus no surprise we saw a good jump in those currencies last Friday albeit short lived. With Euro at least there is still the Greek vote today so more volatility ahead there. JPY some soft data also came out but overall the shorts are still modest.

I think when the Fed does eventually raise rates which will happen sooner or later these currencies are going to get crushed. The Aussie and Kiwi shorts were trimmed but probably more to do with the the fact they have been beaten to death of late. Looks like the world is depending on UK and USD to pull us thru a sluggish growth period.

In Australia Gough Whitlam who was one of our many Prime Ministers once said after being kicked "God may save the Queen but nothing will save the Governor General" perhaps today that might read "God may save the Queen but nothing will save the Aussie Dollar.....or Euro.....or Kiwi....etc".

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