This summary highlights futures positions and changes made by speculators in forex, bonds and stocks up until last Tuesday, October 6.
This was the week where President Trump’s coronavirus diagnosis helped support the prospects both for stimulus and an easier election win by Joe Biden as he extended his advantage in opinion polls. In response to these developments, the S&P 500 traded higher by 1% while the dollar was slightly softer. The big move, however occurred at the far end of the U.S. yield curve, with yields on 10 and 30-year bonds surging to a four-month high.
Despite trading lower against all but one of the ten IMM currency futures tracked in this report, speculators still reduced bearish dollar bets by 7% to $28.9 billion.