Financial markets are still in operation 18 months after the big GFC melt-down and it looks like some players are finally starting to exit their so-called Armageddon trades, the primary one which was long Gold. Other trades, which probably seemed like good ideas at the time, were stockpiling copper and other commodities. Good luck getting out of those!
The ultimate trade in the FX markets has been to be long the AUD and other commodity currencies against the ‘old-economy’ currencies like the EUR, GBP and the USD. They say that a currency pair always looks it’s absolute worst and most bearish right at the bottom. I must say that GBP/AUD looked very very bad yesterday. I wonder?
