What's the best way to short it? Not necessarily implying to do that now, just for future reference. I shorted UUP a while ago, but my broker charged me borrow fees that ended up eating into my profit as I held it for several months. Figure there's a better way to gain short exposure on the USD relative to an index such as the DXY. Although I think most of DXY is the Euro so might as well just trade the USD / EUR currency pair.
Nah, once the Fed announces the rate hike, there will be no more resistance. And to compete with the increasing adoption of RMB across the world, I predict there might be even more rate hikes just to make USD more attractive to hold especially in light of the possibility of China's military takeover of Taiwan. If US wants to continue to use sanctions as the weapon of choice to go against China, it's essential that USD at least retains its current degree of influence otherwise it's not going to be effective especially since China is not as reliant on western products/services as Russia.
I wouldn't short the USD now, not until after the Fed's rate hike next week. I think there is still some room to move up. But in the long run, if the Fed keeps up the rate hikes, I think the USD might strengthen. US is still an import-heavy country relative to its exports so it would help to have a strong USD.
Unless the CPI comes in less than 8.1% it will only go higher. I think that most of the move in April & May was the Yen collapse but it seems to have stabilized at 130-131 level. I am still amazed that the BOJ still believes that inflation is "transitory" -- looks like that's where JPow learned his thesis. I saw an interview with the former head of the BOJ and he stated that most likely they would step in at the 135-140 level.