US “exceptionalism-lite” expected to persist and so keeping a bullish view on the greenback is recommended. We keep a bearish view on the euro, as the emergency energy plan may be more meaningful toward its prospects than central bank policy changes. The mix of energy price caps and delinking electricity pricing from gas could be worth upwards of 1.5-3c on EUR/USD, if delivered, but remains tactically short due to persistently low growth in Europe and low carry. Recommend adding a short kiwi exposure, taking profits on an Aussie-Kiwi long, and remaining bearish sterling. Covered Euro-Yen 3-month put spread at a loss and, see the possibility dollar-yen could move to the mid-140s - J.P. Morgan
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