Position update

Re entered short Euro long USD positions at 1.4145 and 1.4238, with further orders to sell Euros at 1.4350 and 1.4400.

So current position 2m Euros sold bought USD at average of 1.4192.

Reasons:
1.
Investors will be buying USDs to shore up losses in US markets, and carry trades are being unravelled.

2.
I don't like the Russian expansion going on. Georgia is the obvious but Ukraine and Poland are very worried. Russia sending military planes to Argentina and reports of "fly bys" in the Atlantic and near Alaska with British and US planes prove that Russia is once again testing the waters.

Putin wants to return Russia to former glories, and will be pushing the envelope more in the months ahead. He has the money to do it, with oil and gas revenues flowing back to Russia.

The European Union and Nato is a plate of jelly, as depicted in last weeks Economist.

Euro investors are naturally worried. If you need proof, take a look at a Euro/USD chart. It dropped sharply on 7/8 August, just as the Olympics started.

But they were also the days when Russia retaliated in Georgia and the tanks went in.

Sell Euros!