Imo DXY here at 95 mid has an easy 50bps of topside left in it if rates can hold here at 33%, UST also seen higher across the board with the bench mark 10y yield breaking pre-brexit levels.
Long DXY , and shorting $yen on rallies is the way I intend on playing this, yen from a risk-off perspective imo is still cheap whilst USD been heavily offer for the past week.. rates need to hold up though so this is tactical positioning rather than a structural 21st Sept Fed bet. SPX likely to remain underpressure too whilst rates trade here so short positioning is paying off though i still like SPX lower to 2000s and will be holding for this.
Fed Rosengren Speech Highlights:
Fed's Rosengren: Gradual Interest Rate Increases 'Appropriate'
Rosengren: U.S. Economy Resilient Despite Drag From Overseas
Rosengren: Could Reach or Exceed Full Employment 'Over the Course of the Next Year'
Rosengren: 'Reasonable Case' for Gradual Interest Rate Increases
Rosengren: Weakness in Recent GDP Readings Reflects Inventory Adjustments
Rosengren: Expects Growth to Exceed 2% Next Two Quarters
Rosengren: 80,000 to 100,000 Jobs a Month Needed to Keep Unemployment Rate Constant
Rosengren: Stock Prices, Gauge Show U.S. Resilience
Rosengren: Commercial Real Estate Prices Have Risen Rapidly
Rosengren: Risks to Forecast 'Increasingly Two-Sided'
Rosengren: Waiting Too Long to Raise Rates Could Lead to 'More Pronounced' Slowdown in Growth