Monday, December 10, 2012

US Dollar bullishness

Got some US dollar exposure last week through the UUP. I tried shorting the AUD/USD pair with not much success, and a better way to pay the AUD weakening in the first half of 2013, would be to be long UUP (as it's priced in US dollars) - Allowing the exposure for natural forex weakness on UUP strength and the gains if there are continued moves into the currency through the ETF.
This is a good addition to my overall portfolio allocation and a decent hedge if we see some sort of large sell-off if fiscal cliff isn't resolved by mid Jan 2013.

USD article; I agree with most points except the analysis on the GBP.