Another reason to be very careful getting long EUR/USD, cable or AUD/USD at current levels. USD shorts are at their highest level in almost a year, although not yet at extremes. Overall JPY positioning has flipped from long to short and the big unwind in GBP short positions has gained pace. EUR, AUD and CAD longs continue to increase.
In other words, the “carry trades” are back in vogue. This trend has been ongoing for about three weeks so it is not yet getting close to ripe.