By Abdul H. Jaffar As markets closed last week for the month and marked the last quarter for 2020, between the messy presidential debate, cold mid-west weather and the President being hospitalized because of corona; the month end flow of funds still points to strong demand for the greenback. I am not sure if it’s the American investors tradition or what, but for some reasons, people like to be in cash before the election.
Source: ETF.com
More than $2 billion outflows were seen from the US equity on Oct 1st alone and about $1.2 billion were moved to bond amid uncertainty that currently plague the US political landscape and economy. On a positive note, the US President was given medication that could be the next vaccine for Covid-19, which if proven effective, could halt the rise of Gold.
Source: CFTC
Latest CFTC Commitment of Traders report shows that speculators added more than $4.6 billion in gold while at the same time adding $3.56 billion in USD. Speculators grew increasingly bearish in Sterling as sell-on-rally was the preferred strategy that saw $1.26 billions shorts added. Meanwhile, UBS short on EUR/USD was stopped out at 1.1780 earlier today. Citibank, on the other hand, remains bullish on GBP/USD with stop lifted to 1.2820.
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RTC Team