I have absolutely no idea what the impact of the US financial reform will have on the USD, if any. What I do know is that uncertainty is bad. I also know from the latest CFTC data that the market is long USD. By my nature, I’m always looking for markets to turn, and if the market suddenly gets tired of focusing on Greece and starts concentrating on the dollar for instance, then we might see some decent action.
Betting against trends is a dangerous game in FX. I’m not quite ready to do so yet but I have cut my short cable position at breakeven as it just doesn’t feel right.
