Hedge Funds Short on Dollar for First Time Since 2018

https://dailyalts.com/wp-content/uploads/2020/08/us-dollar.jpg

Hedge Funds: Hedge Funds Short on Dollar for First Time Since 2018

Hedge funds have decreased in share prices for the first time since May 2018.  A decrease in price for the world’s reserve currency will continue as the market remains unpredictable.  Net futures held by funds against eight currencies dropped to minus 7,881 contracts.  According to the Commodity Futures Trading Commission, this was a result of high expectations and bets on the euro.  The U.S. dollar is in trouble and is facing pressure after the Federal Reserve promised unlimited liquidity for the economy.  This is largely due to the Coronavirus pandemic and the resulting market conditions.  

Additionally, assets in the U.S. have seen a massive decrease in demand as inflation has come to a near halt.  Falling interest rates and monetary policy from the fed have induced this reaction.  According to Yujiro Goto, “The drop in the dollar is a reversal from the surge in March, especially given the currency had looked overvalued…A slide in U.S. real yields has also accelerated that move.”  

With the success of competing economies, dollar strength has dropped seven percent.  Those economies’ successes are heavily correlated with their ability to tame the virus.  According to Barclays, the dollar may receive support in U.S. stimulus negotiations.  On the other hand, Deutsche Bank views stimulus negotiations as another toll for the dollar.  For now, the potential rebound for the U.S. dollar is highly uncertain.  

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2021/04/bitcoin-4317828_640.jpg
Digital Assets: MicroStrategy To Pay Directors In Bitcoin
April 12, 2021     Digital Assets, News

In a unique plug for bitcoin’s adoption, MicroStrategy (NASDAQ: MSTR), the business information firm, has decided to pay its non-employee directors in bitcoin. The company has been a trendsetter, setting…

https://dailyalts.com/wp-content/uploads/2021/04/frog-1339894_640.jpg
Alternative Investments/Digital: Yet Another Bitcoin ETF Application; Galaxy Digital Is The Latest Hopeful

Galaxy Digital, the cryptocurrency investment firm led by Mike Novogratz, has filed an application with the SEC to launch a bitcoin ETF that will trade on the NYSE Arca. The…

https://dailyalts.com/wp-content/uploads/2021/04/DjDeFVDU4AAjJ26-scaled.jpg
Artificial Intelligence: Microsoft Eyeing Acquisition of Nuance Communications (Bloomberg)

Microsoft (NASDAQ: MSFT) may buy Nuance Communication (NASDAQ: NUAN) at a valuation of $56 per share, according to Bloomberg, which cited unnamed people who were familiar with the matter. The…

https://dailyalts.com/wp-content/uploads/2021/04/dollar-2891849_640.jpg
Venture Capital: Supervest, A Platform That Matches Loan-Seeking Merchants With Investors, Is Seeking Funds
April 12, 2021     FinTech, News, Venture Capital

Supervest calls it a new asset class. Merchant cash advances (MCA) are a form of short-term financing for merchants in the form of a sales agreement in which capital is…