【J.P. Morgan Data Shows Surge in Dollar Demand as U.S. Election Approaches】On October 21, Financial Association reported that J.P. Morgan strategists cited their own indicators indicating that as investors bet on the dollar rising before the U.S. election, dollar demand surged last week, and this buying momentum could continue. The most popular trade is buying dollars in the options market while selling Singapore dollars and Australian dollars, indicating that investors are hedging their exposure to China-related currencies. Strategists like Patrick Locke wrote in the report that the demand for buying dollars against the Mexican peso and euros is also strong. Driven by this wave of buying, investors' dollar positions are shifting from short to neutral, after the dollar had just recorded its worst quarter since the end of last year based on trade-weighted exchange rates. The strategists noted that this leaves ample room for traders to increase long positions before the election. J.P. Morgan data shows surge in dollar demand as U.S. election approaches
