CitiTechs made a big switch into risk trades overnight. The information that these guys get is usually very good so it’s worthwhile paying attention to what they do, especially when they are getting it right as they have been doing recently.
- They’ve cut their short EUR/USD position
- They’ve turned their long USD/JPY position into a long EUR/JPY trade
- They remain long EUR/CHF
- They’ve gone long AUD/USD
That certainly is a strong view they have there. I’m guessing that their reasoning is that the market is still overly short EUR and with the most dire prognoses for the EUR not coming true so far, we may see a big short-squeeze pre-Christmas.
