I found this really insightful! The tail-risk concerns around CAD make sense, especially if oil prices dip further. Still, it’s hard to ignore the strong USD sentiment heading into the Fed’s announcement…
On the USD, sentiment is still leaning bearish, which is why we like the setup. Cuts are largely priced in here & crowded positions tend to offer the best asymmetry when the underlining macro picture says otherwise.
I found this really insightful! The tail-risk concerns around CAD make sense, especially if oil prices dip further. Still, it’s hard to ignore the strong USD sentiment heading into the Fed’s announcement…
Glad you enjoyed it Amar!
On the USD, sentiment is still leaning bearish, which is why we like the setup. Cuts are largely priced in here & crowded positions tend to offer the best asymmetry when the underlining macro picture says otherwise.