Bank of America (BofA) said Monday that investor conviction in shorting the U.S. dollar has fallen to its weakest level since Liberation Day, according to its latest market analysis.
The bank emphasized that the drop in conviction was not the result of concerns over existing USD positions, which it said remained “largely contained.” This development reflects a broader shift over the past month, during which many investors have trimmed short dollar positions as sentiment toward the greenback has turned less bearish.
BofA’s research also noted that investors “continue to express worry about the market potentially underpricing debates surrounding Federal Reserve independence.” Concerns remain that these discussions could influence how the dollar performs in the months ahead.
Nevertheless, BofA highlighted that “investors are currently prioritizing other market issues rather than focusing on these potential dollar risks.”
The report included several charts and data sets illustrating the shift in sentiment and positioning trends, underscoring how investor attitudes toward the dollar have evolved in recent weeks.
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