and this lot is from HC - Calvo on the XJO thread Monday Onwards #4733044 - give him a thumbs up!
"Well I think a USD short covering rally [a substantial spike] is around the corner and almost a foregone conclusion its a matter of timing, it may be short lived or it may manifest itself into something serious.
One thing is for sure the USD carry trade is crowded. Borrowing USD to buy commodities and securities whilst commodity inventories are at all time highs and equity yields are at all time lows; it is going to end in tears. Gold is equally in trouble.
Futhermore, the FED is whispering to the market 'it wants a strong USD' which is placing pressure on USD shorts to cover... futhermore if the Fed needs to sell more govt debt in future it needs to show something positive to China and Japan that are long USD via US govt debt.
The USD short trade is very crowded; and this is the most important point of them all."
