Macro: It’s all about elections and keeping status quo
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
Head of Commodity Strategy
Summary: Hedge funds bought dollars for a fourth consecutive week as recent highs got challenged
Saxo Bank publishes two weekly Commitment of Traders reports (COT) covering leveraged fund positions in bonds and stock index futures. For IMM currency futures and the VIX, we use the broader measure called non-commercial.
Hedge funds and other large speculators increased their dollar long against ten IMM currency futures for a fourth consecutive week to $17.5 billion, the highest since June.
The net-short in NZD reached a new record of 40k lots while the euro net-short was reduced to 61k, this despite the continued weakness which later in the week saw EURUSD steer towards €1.09 and a fresh two-year low.