CHART OF THE DAY: Strong Dollar Smackdown

Our #StrongDollar call continues to wreak havoc for those macro participants late to the party. Remember that the most crowded USD short positions (as seen in futures & options open interest across currencies) were held heading into Q2. The US Dollar Index is now +8.8% off its 02/15 low of 88.59.

Here’s how this big macro theme rippled through FX markets last week:

1. US Dollar Index was +1.3% to +4.6% YTD and remains Bullish TREND @Hedgeye
2. Euro (vs. USD) was -1.3% to -4.9% YTD and remains Bearish TREND @Hedgeye
3. Pound (vs. USD) was -1.9% to -5.6% YTD and remains Bearish TREND @Hedgeye
4. Canadian Dollar (vs. USD) was -1.2% to -4.3% YTD and remains Bearish TREND @Hedgeye 

#StrongDollar of course hits higher yielding and less stable currencies the hardest. Here were some of the biggest bloodbaths in Emerging Markets last week: 

5. Turkish Lira (vs. USD) was -20.9% to -40.8% YTD and remains Bearish TREND @Hedgeye
6. Argentine Peso (vs. USD) was -6.6% to -36.3% YTD and remains Bearish TREND @Hedgeye
7. Russian Ruble (vs. USD) was -5.8% to -14.9% YTD and remains Bearish TREND @Hedgeye
8. South African Rand (vs. USD) was -5.3% to -11.7% YTD and remains Bearish TREND @Hedgeye