Thursday, March 22, 2007
The market loves risk, courtesy of yesterday's Fed shift. If seems one needs an adavanced degree in semiotics to decode the subtleties of the Fed's communication strategy, but yeterday's indubitable softening of tone induced a zowie-worthy reaction from risk assets.
While today has started somewhat slowly, there probably remains more joy in the pipeline. Macro Man has therefore:
* Cut the short Turkish equity position
* Cut long EUR/HUF
* Re-established the FX carry basket, given that the indicator he follows has moved back into risk-loving after several weeks' hiatus.