Hedgehog

A quick follow-up to my contradictory thesis.

ISM Manufacturing Index released just now was both better than forecast and better than previous period. The result was a further deterioration of my dollar longs and europe shorts as money flowed back into equities and drained out of US dollars. Fortunately, my hedge position in GBP/JPY continues to keep me afloat, and I still have time to consider the interplay of factors as they unfold. Clearly the US economy is contracting, but the speed of contraction is slower than expectations. This doesn’t necessarily bode for a recovery, but it does help sway sentiments in the short-term.

Still a payroll report by end of the week, and lots of economic release in between.