Calyon picks the dollar recovery

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"The markets have been positioned very short dollars and it's been difficult to increase these short positions. Much of the bad news [for the dollar] had been priced in and the technicals left room for the dollar to rebound. Our view was any dollar weakness would be unsustainable."

That view was proved right last week, as euro/dollar, which spiked at 1.2374 on August 13, then sank below 1.21 last week, and cable traded below 1.80 for the first time since May. From here, however, Kotecha does not