A J.P. Morgan strategist quoted the bank's own indicators as saying that demand for the dollar surged last week because investors are betting that the dollar will rise on the eve of the US election, and this kind of buying is likely to continue. Strategists such as Patrick Locke wrote in the report that demand to buy USD/MXN and USD/EUR is also strong. Driven by this buying trend, investors' dollar positions are changing from short to neutral. Previously, the US dollar had just recorded the worst quarter since the end of last year based on trade-weighted exchange rates. The strategists wrote that this left plenty of room for traders to increase their long positions before the election. “Election deals are starting to flourish,” the strategists wrote. “Although investors have bought dollars since October, overall, dollar positions are still neutral to a large extent. There is room for more election hedging deals in the next two weeks.”

Zhitongcaijing · 10/21 12:57
A J.P. Morgan strategist quoted the bank's own indicators as saying that demand for the dollar surged last week because investors are betting that the dollar will rise on the eve of the US election, and this kind of buying is likely to continue. Strategists such as Patrick Locke wrote in the report that demand to buy USD/MXN and USD/EUR is also strong. Driven by this buying trend, investors' dollar positions are changing from short to neutral. Previously, the US dollar had just recorded the worst quarter since the end of last year based on trade-weighted exchange rates. The strategists wrote that this left plenty of room for traders to increase their long positions before the election. “Election deals are starting to flourish,” the strategists wrote. “Although investors have bought dollars since October, overall, dollar positions are still neutral to a large extent. There is room for more election hedging deals in the next two weeks.”