Bank of America Survey Shows Most Negative US Dollar Positioning in 14 Years

According to Bank of America’s February FX and rates survey, dollar short positions are at their highest since January 2012, marking the most bearish sentiment in over a decade.

Summary

Bank of America’s latest FX and rates sentiment survey indicates that February’s market positioning towards the US dollar is at its most negative in 14 years. Short positions in the dollar have climbed to their highest level since January 2012, signaling a marked increase in bearish sentiment among investors. This shift reflects a significant move away from the US dollar in global currency markets.

Terms & Concepts
  • US Dollar Positioning: The aggregated stance of traders and investors in the foreign exchange market towards the US dollar, often reflecting overall sentiment and strategy.
  • Short Position: An investment stance where a trader sells an asset they do not own, betting its price will fall to repurchase it at a lower price for profit.
  • Forex Market: The global marketplace for trading national currencies, also known as the foreign exchange market.