USD: Positioning Shows A Renewed Short USD Build As Market Attempting To Price In A Biden Presidency - TD
TD Research flags a renewed build in USD short positions ahead of the US November Elections.
"FX markets have remained broadly well contained. That said, we note that our aggregate positioning index has shown a renewed short USD build since the first presidential debate.
With betting markets pricing in greater odds of a blue wave, we think the FX market is now attempting to price in a Biden presidency, which we think will be reflationary," TD notes.