Institution: The United States airstrike on Iran, investors should exit short positions in the US dollar.

Vanda Research strategist Viraj Patel said that the US airstrikes on Iran are another reason for investors to exit their bearish US dollar positions in large numbers. "The US airstrikes over the weekend have been another catalyst for hedge funds and CTAs to unwind their bearish USD positions," he said. "We think one of the biggest pain trades of the summer might be a slow grind higher in the dollar - as the reasons to be short the dollar are tossed aside." Bets on the euro, pound and Swedish krona are "particularly vulnerable to a large momentum unwind in the market." Patel said he continues to be long EUR/SEK, to "hedge against deteriorating global risk sentiment and fading 'sell America' sentiment"; with a target price of 11.40.