JPMorgan Figures Show Surging Dollar Demand as US Election Nears
- Bullish calls are near 2 standard deviations away from normal
- Neutral positioning leaves ample room for more buying
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Demand for the dollar surged last week as investors bet on a rally in the run-up to the US election, and this buying is likely to continue, said strategists at JPMorgan Chase & Co, citing their proprietary metrics.
The most popular trades paired buying of the US currency in the options market with selling of the Singapore and Australian dollars, a sign that investors are hedging exposure to China-linked currencies. There was also strong demand to buy the dollar against the Mexican peso and the euro, strategists including Patrick Locke wrote in a report.