Euro demand persists as real money investors buy dips

Published 17/06/2025, 10:46
© Reuters.

The euro continues to find support from real money investors who view dips as buying opportunities, according to Bank of America’s latest foreign exchange analysis released this week.

While hedge funds increased their U.S. dollar positions last week, particularly against the euro, real money investors—especially those in Europe—maintained their strategy of purchasing euros during price declines, Bank of America reported in its market analysis.

The bank highlighted "meaningful official euro demand" as a notable development last week, indicating sustained institutional interest in the European currency despite fluctuations in market sentiment.

In other currency movements, Bank of America observed distinctive hedge fund demand for the Norwegian krone against the Swedish krona, marking a standout trend within G10 currencies.

Emerging market currencies also experienced strong demand, with real money investors in Asia and hedge funds in Latin America increasing their positions, leading Bank of America to note there remains "ample space for USD EM to sell off further."

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.