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Investing.com - Bank of America reports that the recent USD bounce and EUR weakness reflect the fastest EURUSD positioning adjustment in any six-month period since 2012, according to estimates released Thursday.
The financial institution notes that strong Real Money activity observed earlier this year, particularly in Europe, Middle East, and Africa (EMEA), has been absent in the third quarter of 2025.
While the market may be short on USD according to Bank of America’s estimates, this bearishness appears primarily expressed through futures and options rather than spot trading, with proprietary flow data suggesting Hedge Funds maintain a neutral USD position and Real Money investors only somewhat short.
Bank of America indicates that Real Money investors across all three global regions have significant capacity to sell USD further, with American Real Money likely having more room to do so against EUR than their counterparts elsewhere.
The financial institution concludes that positioning does not present material constraints to its medium-term bearish USD outlook, though it maintains a cautious stance on EUR in the near term, noting that official institutions and corporate entities have supported USD throughout 2025.
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