I am massively short the USD.

Discussion in 'Trading' started by destriero, Aug 31, 2019.

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  1. destriero

    destriero

    I have reconciled taking heat on tariff-reduction, but feel I am going to make 7-figures over the next two years short the USD. A de facto short dollar policy will be adopted by the current and successive Administration(s). We must inflate via a weak-dollar inflationary spiral to pay the US debt and buoy US exports in the short term.

    I am short 20MM USDCAD from 1.3321 average. Short all majors as well.
     
    beginner66, yc47ib, CALLumbus and 2 others like this.
  2. Maverick1

    Maverick1

    Good luck!

    Any implications for equities?
     
  3. Great position to be in, not. Hope you prepositioned rather than having held against this entire move up.

    Screenshot_20190901-111600.png
     
  4. destriero

    destriero


    Good for export markets, oil/services. etc. Any way that I look at it it ends badly for equities, net-net. I cannot buy exporters as it flies in the face of my bearish macro-view, hence the short USD thesis.
     
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  5. Cuddles

    Cuddles

    huh...was thinking going long Canada myself today.
     
    VPhantom and destriero like this.
    1. [​IMG]
      destrieroI have reconciled taking heat on tariff-reduction, but feel I am going to make 7-figures over the next two years short the USD. A de facto short dollar policy will be adopted by the current and successive Administration(s). We must inflate via a weak-dollar inflationary spiral to pay the US debt and buoy US exports in the short term.

      I am short 20MM USDCAD from 1.3321 average. Short all majors as well.

      #1 Yesterday at 10:48 PM
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      haste likes this.

      Interesting idea. However, Canada has even higher leverage than the US, has large exposure to China in Canada’s real estate markets, and your macro view implies oil prices will be weak, a major Canadian export.

      Further, it seems the major Central Banks are in a “race to the bottom” with their currency weakening policies. Didn’t the EU recently make their interest rates even more negative?

      The US has one of the highest interest rates of the major developed counties right now and as you know, relative interest rates are an important factor in currency trends.

      We have already seen global currency devaluation as measured by precious metals prices, especially gold and silver. Lately, even platinum has joined the party. Every day I see the sum of ES and ZB increase, I feel the purchasing power of the dollar is less, even if it is not shown in currencies or even precious metals that day. Most tangible assets will probably appreciate in all currencies and thus will outperform any one currency over another.

      The upcoming US Presidential elections should provide increased volatility opportunities in foreign currencies, say starting in 6 to 9 months.

     
  6. That alone should make you want to stay long usd until usd rates fundamentally change relative to other rates. You can't have it both ways, on one hand you argue that interest differentials drive currency trends and I agree, but then you position exactly opposing the prevailing trend.

     
  7. contra

    contra

    USD/CAD... I like it. I think you're right when you say, "a short dollar policy will be adopted by the current and successive Administration(s)." With some taking Trump's tweets as intervention threats, and Mnuchin saying he did not intend to intervene in the market for now. I don't know about the intervention talk, but they definitely want a weaker Dollar.
     
  8. volpri

    volpri

    03AC4A28-A54D-480A-AE06-E0A15A7AE7D2.png
     
  9. gaussian

    gaussian

    Everyone thinking this troll controls any capital is playing into his childish hedge fund fantasy.

    We should ban anyone claiming to hold a position with a potential profit of 20MM without timestamped photos starting with this clown. Manipulate some other forum you tool.
     
    #10     Sep 1, 2019
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