Euro and Pound

It’s been relatively quiet on the equity front, even with the market going up – but the currency front continues to be a big focus.

The euro continues its slide:

I’m still amazed that the yen has continued to stay strong, but I guess this is part of unwinding various carry trades. Still, I can’t help but think that once those unwinds occur, the yen will completely fall apart. (Short yen positions.)

Today, though, the story is GBP. The pound has been weak recently, but not as weak as it should have been, and today it looks like the pound is showing increasing signs of stress:

These moves are providing some support to the Treasury market with safe-haven buying, but we’re wary of the long bonds for security. So are other people, with gold as the original safety outlet, and now silver looking like its receiving some of the flows.

We’re maintaining our positions in silver, gold, gold miners, palladium, and platinum, along with our short euro, short yen, and short treasury positions.

Last 5 posts by Yaron Sadan

• GS catching up on our conversations on demographics - August 12th, 2010
• Europe revisited - August 12th, 2010
• Starting the day off - August 11th, 2010
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