Cyclical Minus Defensive Sectors Positioning The cyclical-minus-defensive sectors positioning at the 24th percentile indicates a defensive market stance, with investors heavily favoring sectors less sensitive to the economic cycle. Image: Deutsche Bank Asset Allocation
Aggregate U.S. Dollar Position, Non-Commercial Traders Speculators are holding their most bearish positions on the U.S. dollar since September 2024, driven by global optimism, de-dollarization trends, and relative strength in other major currencies. Image: Bloomberg
Reserves in Different Currencies While the USD share of global FX reserves has slipped somewhat, it remains close to 60% and continues to be the leading global reserve currency by a wide margin. Image: Deutsche Bank
Net U.S. Dollar Positioning When USD postioning is very light, USD tended to move higher. Image: J.P. Morgan
U.S./German 2-Year Yield Spread vs. U.S./Euro Foreign Exchange Rate This chart shows the Euro vs. US Dollar (EUR/USD) and how a wider U.S./German 2-year yield spread corresponds to a stronger US dollar. R² = 0.62 since 2005.
$11 Trillion Bonds Globally Trade At Negative Interest Rates The total amount of negative interest rates climbed to USD 11 trillion. Investors are paying governments for the privilege of holding their bonds and are losing so much money in real terms. Image: Deutsche Bank Global Research