Trend followers have recovered their positions on long EUR/USD trades: BofA

Published 28/07/2025, 11:00
© Reuters.

Investing.com - Trend following investors have recovered their positions on long EUR/USD trades following a rebound in the euro this week, according to Bank of America (NYSE:BAC) analysis released Monday.

The report indicates that Commodity Trading Advisors (CTAs) had faced potential unwinding of their EURUSD long positions last week amid dollar strength, but the euro’s recovery has pushed those trigger points further away temporarily.

Bank of America notes that positioning remains "stretched long" not only in the euro but also in British pound (GBP) and Mexican peso (MXN), suggesting these currencies maintain significant exposure to potential corrections.

Looking ahead to next week, the analysis suggests trend followers could be adding to short positions in Japanese yen (JPY) and Canadian dollar (CAD), indicating bearish sentiment toward these currencies.

In fixed income markets, the report states that CTAs currently maintain "moderately long" positions in 10-year U.S. Treasury futures, with these positions likely to move in tandem with spot prices in the coming week.

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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