Risk Reversal

I'm at the carpark, the airport
The baggage carousel
The people keep on crowding
I'm wishing I was well
I said it's no occasion
No story I could tell
--Squeeze

The dollar seems to be getting its groove on. The technical picture suggests a trend reversal underway.

All of those carry traders who have been borrowing dollars over the last 6 months to buy risky assets must be praying that this doesn't morph into one mother of a short squeeze.

Should such a scenario come to pass, it will likely be an interesting last couple of weeks in 2009.

position in USD