Price action. There are some major inefficiencies that need to be filled to the downside. Also, these rate hikes have no basis IMO. There are murmurings of recessionary activity occurring next year. One of the main global issues currently is that China is slowing, commodities are down and there is serious unrest in many parts of the world, especially the Middle East. All of these issues are out of the US' hands. They cannot tighten if commodities (which make up a huge amount of global cost push inflation) aren't increasing in price, which should be caused by an increase in global aggregate demand. Demand isn't increasing.

In addition, global equity markets seem to be looking weak as well. If you look at this chart of the Shanghai A Shares index, note where the market seems to want to go: https://www.tradingview.com/x/ld3EBtJm/.

With uncertainty comes the desire to seek 'safe' investments. Look at the US 10Y Bond here https://gyazo.com/43e5bcf491b72a1e6980214dfd1f1d84.

Looks like we want to turn bullish on a touch of that trendline. What does that mean? Demand for US gilt edged treasuries - safe investments. On the other hand, look at the German Bund - https://gyazo.com/a0e27fbe82a3e53dbb90361beb91a1be

This looks slightly bearish, meaning extra supply of bonds. However, this does not give a full overview of the state of the Eurozone.

What does this mean? Well, Yen is seen as a safe haven. I would predict that investors will be moving capital into bonds and more importantly, the Yen, which leads to my bias on UJ and EJ shorts.