BlockBeats News, February 16 — The latest foreign exchange and interest rate sentiment survey by Bank of America shows that the dollar positioning in February has turned the most negative in over 14 years. The dollar short positions have now reached their highest level since January 2012 (the earliest available data point).
Fund managers’ dollar exposure has fallen below last April’s low. After President Donald Trump nominated Kevin Warsh to serve as Federal Reserve Chair, concerns about the Fed’s independence eased, but this did not boost dollar demand or improve perceptions of US assets.
Respondents believe that further deterioration in the US labor market is the main downside risk facing the dollar.