BlockBeats news, February 16, the latest foreign exchange and interest rate sentiment survey from Bank of America shows that in February, dollar positioning turned to the most negative in over 14 years. Dollar short positions have now reached the highest level since January 2012 (the earliest available data point).
Fund managers’ dollar exposure has fallen below last April’s low. Concerns over Federal Reserve independence have eased after President Donald Trump nominated Kevin Warsh for Fed chair, but this has failed to boost dollar demand or improve views on U.S. assets.
Respondents see further deterioration in the U.S. labor market as the main downside risk for the dollar.
