Short USD positioning:
Long GBPUSD and short USDJPY - Sterling re-balancing higher (attached), no fed hike likely thus 20% priced in needs to be faded out in USD downside. Further, my bets are any real BOJ action doesnt happen (e.g. depo/ lsp cut or QE) - All JPY STIR markets are infact pricing hikes, there isnt any level of cuts priced (Libor, Tibor, Euroyen)....
Fed Lockhart Speech Highlights:
Lockhart: Tepid Business Investment Plans Raise Questions About Growth
Lockhart: Uncertainty A Real Factor For Economy Right Now
Lockhart: Fed Rate Policy Will Be 'Cautious And Gradual'
Lockhart: 'No Gun To Our Head' To Raise Rates Quickly
Lockhart: Two Rate Rises Remain Possible, One Likely This Year
Fed's Lockhart: There's...
Fed Lockhart was cautious on the margin stating one rate hike in 2016 only "could" be appropriate rather than should which echoed the sentiment of the earlier Fed Dudley speech which was alot more hawkish imo. This has helped the USD back off its Dudley induced gain, and refocus on the CPI miss as Lockhart reminded the market that " Some Signs Election Uncertainty...
