Citi's analysis of futures and options positions reveals that short-term traders are positioning themselves to go long on the U.S. dollar as the U.S. election vote concludes. According to Citi strategists, these early movers are often Commodity Trading Advisors (CTAs), who typically react only to price-based signals and are leveraged investors.
The study indicates that most commodity trading advisors are taking long positions in the U.S. dollar. They also hold significant short positions in currencies such as the Australian dollar, Canadian dollar, Japanese yen, and the Mexican peso.
