The American bank points out that its own flows in USD became neutral in the midst of a growing commercial uncertainty.
Bank of America (Bofa) He informed that his US -owners of US dollars became neutral, in a context of growing global commercial uncertainty and with still unclear consequences for the behavior of the green ticket, after the last events after the day of liberation.
According to the weekly report Global FX of the bank, both the Hedge Funds as the investors of Real Money They offered some support to the dollar. In particular, the Real Money segment showed interest in the dollar against the euro (EUR), in addition to operating in the currency options market in favor of the dollar.
As for the Japonés (JPy)the flows also became neutral. However, Bofa warned that the market continues to hold long positions in the Japanese currency, a factor that reinforces the cautious approach of the bank, especially in the prelude to the elections for the Upper House of Japan.
Trump.jpg
Reuters
Mixed flows in Yen and Australian dollar reinforce the caution of the market
The report also analyzed the behavior around Australian dollar (Aud). There, the institutional investors of the Real Money segment resumed purchases after the restrictive tone posture (Hawkish) of the Australian Reserve Bankparticularly after previous weeks marked by intense sales. In contrast, the Hedge Funds continued to reduce their long positions on the Australian currency.
Despite this, Bofa argued that the general positioning in Aud It is still long but not excessiveand that mixed signals among their indicators do not configure a relevant risk for their “constructive” vision of this currency.
In this context, the recoil of dollar index – which accumulates a fall greater than 9% so far this year – reflects not only portfolio adjustments to changes in monetary policy, but also a growing fear among investors regarding the lagging impact that the commercial decisions taken by the previous administration of Donald Trump could have. The consequences, warm analysts, They could begin to make visible more clearly in the next macroeconomic indicators.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
