MarketsMuse Global Macro curators credited with metaphoric title “Dollars and Donuts”–a phrase many of those who trade on institutional desks should appreciate…Snippet below is courtesy of a.m. edition of institutional research unbundler SubstantiveResearch.com
Neil Azous from Rareview Macro writes that for all attention being devoted to the equity market at the moment, the biggest sensitivity in markets currently is the long USD trade, which is where a majority of the market risk now sits. Indeed, with 45 days left in the year, this trade could be the make or break for many investors in 2015, Azous adds. This is reflected in CFTC positioning and yesterday’s BAML fund manager survey, which shows a widespread sensitivity to a USD selloff. Azous outlines three hurdles that US dollar longs should be aware for the remainder of the week. Not surprisingly they involve either central bank meetings or disclosure of policy committee meeting minutes from the BoJ, Fed and ECB.
To read the entire commentary form Rareview Macro, click on the link below (subscription required, Free Trial available)