J.P. Morgan: The decline in the US dollar and US stock market is driven by speculators, not for hedging purposes.

JPMorgan Chase stated that the recent pullback in the US stock market and the US dollar is highly likely to have been caused by speculative investors such as hedge funds simultaneously taking short positions on both US stocks and the US dollar. Strategists, including Nicolaus Panigirtzoglou, wrote in a report that there is little evidence to suggest that active overseas equity fund managers have increased their hedging against a weaker US dollar.