Combining long dollar with long US Treasuries positions

Posted on 07. Oct, 2014 by Jean Jacques Ohana in Weekly Focus

Among the signals of the Radar (figure 1), two of them deserve a particular attention:

The short EUR/long USD position, although in a more mature stage, remains attractive because of its low correlation with the other asset classes (close to 0). During the euro financial crisis (2010-2012), the USD/EUR used to be negatively correlated to equities [...]