The U.S. dollar has been benefiting from being the least ugly sheep; eventually this will end as the U.S. remains the only country who could care less about its long term obligations and spends like a drunken sailor. An interesting thing has happened in the past few weeks... the mini U.S. aka Britain has seen its currency benefit since it announced REAL steps to cut government spending. It's currency has surged. There *may* be a sea change happening here. Either way I am going to sell my US Dollar position, and give the British Pound a whirl.
I sold the last 1% exposure in Powershares DB US Dollar Bullish (UUP) with a 1.5% loss, and will start a 1.5% stake in Currency Shares British Pound (FXB)
Volume is very weak in this ETF so it's more difficult to move in and out of, only about 100K shares a day.
My prefernce would be to buy the German mark if it were available... but of course I am about a decade late on that one. If the Austrlian and Canadian dollar were not hammered each time the risk trade were taken off, those would also be good choices.
I am also interested in purchasing long equity positions here to begin hedging long. If you exlude my dollar long, gold long, and silver long I am only about 8% long. It's time to take some long side risk on for a trade at least.
I'll update this piece with charts soon.
Long Currency Shares British Pound in fund; no personal position