In its newest analysis report, Goldman Sachs (GS) cites the chance of additional volatility within the fairness markets.
The report cites hedge fund positions as the bottom for his or her conclusion whereas saying, “final week did present the most important hedge fund positioning ‘de-grossing’ since February 2009.”
It was additionally stated that after shorts and longs transformed hedge funds exposures nonetheless stay near document and thus there may be nonetheless an ongoing danger of positioning-change-driven strikes.
Learn: Brokers’ restrictions on GME and AMC set a harmful precedent – FXStreet Editorial
Whereas GS suggests extra volatility, US Home Majority Chief Chuck Schumer’s latest tweets sign additional hardships for shares like Gamestop:
FX implications
With the market temper swiftly responding to equities, any extra restrictions on fairness buying and selling ought to weigh on dangers. The identical drag AUD/USD in the direction of 0.7600 through the preliminary Asian session on Monday.
Learn: AUD/USD: Bears eye 0.7600 as danger aversion extends into February
