In today’s briefing:
- StETH- Is There a Trade?
- USD Punch Higher Ahead of the Fed and Where to Rotate
StETH- Is There a Trade?
- The stETH/ETH ratio continues to drop and the curve pool has become increasingly imbalanced.
- Alameda, Amber and Celsius have been seen selling stETH in Curve recently. Celsius looks to be in a precarious liquidity position bordering insolvency that may bring on more stETH selling.
- The stETH/ETH discount is driven by liquidity and the set up is for a potential good entry point in stETH.
USD Punch Higher Ahead of the Fed and Where to Rotate
- End of May call to buy the USD vs Euro and JPY and rolled into USD longs vs NZD, CNH, KRW and ZAR. USD rally momentum expanding with EM ignition.
- DXY saw a more impulsive push as US yields attempt new chart highs. Gains are expected to accelerate going into the Fed.
- EM FX is the space to rotate into USD longs given the lag to register secondary lows. Explosive moves are likely.
Before it’s here, it’s on Smartkarma
