Stocks: There is still an ongoing risk of positioning-change-driven moves – Goldman Sachs

In its latest research report, Goldman Sachs (GS) cites the risk of further volatility in the equity markets.

The report cites hedge fund positions as the base for their conclusion while saying, “last week did show the largest hedge fund positioning 'de-grossing' since February 2009.”

It was also said that after shorts and longs converted hedge funds exposures still remain close to record and thus there is still an ongoing risk of positioning-change-driven moves.

Read: Brokers’ restrictions on GME and AMC set a dangerous precedent – FXStreet Editorial

While GS suggests more volatility, US House Majority Leader Chuck Schumer’s recent tweets signal further hardships for stocks like Gamestop:

FX implications

With the market mood swiftly responding to equities, any more restrictions on equity trading should weigh on risks. The same drag AUD/USD towards 0.7600 during the initial Asian session on Monday.

Read: AUD/USD: Bears eye 0.7600 as risk aversion extends into February