By Abdul H. Jaffar Two weeks have passed since US Labor Day, and US Dollar show no signs of retreat yet from the bulls. After more than five months of selling, mid-term investors are ready to lock-in their profits and we should see more Dollar buying in the next few weeks. CFTC records as of last Tuesday shows that speculators trimmed their USD net short by about $1.45 billions.
Source: CFTC
The new worries of a covid-19 second wave in Europe too, has not helped the Euro as players cashed-out and seek safe-haven assets. More than $2.53 billions flew out of Euro while Gold still sees flows of about $1.4 billion and Aussie second at $1.33 billions. In another news, the untimely passing of a US supreme court judge, might tilt the balance of power in the US.
Speculators see a chance that the election results might get delayed or challenged with President Trump under pressure to nominate a new candidate before year end. This political drama will not bode well for the stocks markets that already see a decline today with the heavy weight Dow Jones dropped more than 500 points.
Last week UBS points to even a stronger Dollar as the Swiss investment bank upgrade their take profit for long USD/CAD from 1.33 to 1.3380 after locking-in their stop loss to breakeven. Their EUR/USD short remains active.
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RTC Team