You need to understand something this morning. Namely that former trader and self-described “permabull” Mark Cudmore is calling for “an immediate rally” in the dollar.
As you’re probably aware, the dollar is a lot like Jeff Sessions – “beleaguered.”
And what’s funny is, both the dollar and Sessions are “beleaguered” for the same fucking reason: Donald Trump.
See Trump is going to fire Jeff Sessions for having the audacity to recuse himself from the Russia probe. That’s no good in Trump’s eyes, because as both former FBI Director Comey and now thousands of Boy Scouts know, this is a President who “expects loyalty.”
Well, all of this talk about Sessions and Russia and other things related to treason that Trump definitely didn’t commit has weighed on the greenback.
As it turns out, it’s hard to get things done on Capitol Hill when everyone things you are both mentally unwell and a traitor (who knew?). So healthcare has gotten pushed back, and so has tax reform, and you can just go ahead and forget about infrastructure.
Ultimately, that’s led directly to this:
And as for “long USD” being a “no brainer” headed into 2017, now folks are the most net short since 2013 (more on that here):
(Goldman)
So that brings us full circle to Mark Cudmore who will explain, in the excerpts below, why the dollar is “poised like a coiled spring” ahead of the Fed…
Via Bloomberg
Dollar risks are starting to seem skewed all one way: toward an immediate rally.
