Its been a while, but not much has changed on my front. I'm still short GBP/USD (though this trade is becoming quite a bit "out of the money"). Looking to be long USD/JPY at next dip.
The debt ceiling debacle and latest fed chair news has got dollar weakness running rampant. This is to be completely expected. If i've said it once i've said it 1000 times:
The "debt ceiling" is arbitrary and will be continuously raised until the collapse of the dollar.
There is no recovery.
It is impossible to end QE at this point (not impossible to taper.... but we will soon see that the economy will require more and more QE to function at desirable levels.)
Despite all this, I remain on the side of dollar strength over the next year because I believe we will attempt the taper, and lets face it, many of our friends across the pond are frankly even more irresponsible than us.
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