Latest from Goldmans...from Smart Jet

Latest from Goldmans, the key takeaway for us is that they mention further EUR weakness expected, which is something that we fully agree with In terms of positions they stay short NZDCAD and USDJPY via options, we keep an eye on NZDCAD shorts for a potential reentry but without any rush, right now we prefer USDCNH longs and some potential EUR shorts

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Powell still speaking but so far not much forward guidance is being given, simply the FED is open to hiking further but also open to a pause depending on how the data develops until the next rate decision, so without much said from Powell the Dollar is rightfully basically flat after a bit of volatility on both sides, not a lot to do with it, will see where markets are at tomorrow at the London open but for now, no short term bias and no short term fundamental direction from this flat FOMC

Smart Jet

Morning traders, after two full days of lunches, dinners, and brainstorming with some quite substantially experienced fund managers I get the sentiment out there for the next 3 to 6 months is bearish indices, bullish the Dollar, and bullish the JPY, that didn't surprise me much as it's the classic recession trade, in other words, that has been the dominant topic of our debates, an upcoming recession That is the medium to long term sentiment that mostly came through in the discussions and I kinda resonate with that too, high rates sooner or later will feed through the economy and things will break leading to outflows from risk assets and inflows into safe haven Not much else to add to that, for now it's something too long term for us to act on it right away but I do keep in mind that the easier trades heading into the summer will probably be USD longs and JPY longs

Smart Jet

Latest from Goldmans, they are going short EURGBP, mostly as a GBP bullish trade but with a hint of EUR bearishness as well I like the trade, inflation has been stubbornly high in the UK so there is also room for a hawkish BoE rate decision this week, I will be doing some further reading about the whole context since I haven't been diving deep much into the UK data lately except the inflation numbers but we will likely get into the trade today

Smart Jet