BofA reports USD flows turn neutral amid trade uncertainty

Published 15/07/2025, 10:18
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Investing.com - Bank of America reported that its proprietary USD flows have turned neutral amid heightened trade uncertainty and less clear implications for the U.S. dollar following post-Liberation Day developments.

Both Hedge Funds and Real Money investors provided some support for the USD, with Real Money specifically backing the dollar against the EUR and through FX options, according to the bank’s Global FX weekly report.

JPY flows also shifted to neutral, though Bank of America noted the market maintains long positions in the Japanese currency, adding to the bank’s cautious outlook ahead of Japan’s Upper House election.

In the Australian dollar market, Real Money investors purchased AUD following the Reserve Bank of Australia’s hawkish stance, particularly after strong selling in previous weeks, while Hedge Funds continued reducing their AUD long positions.

Bank of America indicated that while overall AUD positioning remains long, it is not stretched, and the mixed signals across their inputs do not present a meaningful risk to their constructive view on the Australian dollar.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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