Risks for a further squeeze lower for the greenback, says Bank of America.
In the wake of last week’s dovish decision from the Federal Reserve, investors have been throwing in the towel on the U.S. dollar.
But Bank of America Merrill Lynch’s proprietary positioning data suggests there’s still another major shoe to drop for the greenback. In a note to clients, FX Strategists Myria Kyriacou and Athanasios Vamvakidis illustrate that hedge funds’ long position in the U.S. dollar remains substantial relative to the past 12 months and to other investors. Continue reading