BofA analysts declared the USD bulls are back in a note Tuesday, revealing that both hedge funds and real money are buying the dollar.
While hedge funds are long the greenback, Bank of America said, “real money positioning [is] light.”
“Very strong hedge fund demand for USD last week, almost across the board,” said the investment bank. “Real money has also been buying the USD in the last two weeks.”
Elsewhere, analysts revealed that hedge funds have resumed selling the Japanese yen. However, although the market is short JPY, the bank says positioning is not stretched.
For the GBP, hedge funds and real money “seem to disagree” on the outlook.
“Real money seems to be driving the GBP rally, buying since last September,” added BofA. “However, hedge funds have been selling GBP during the same period. Positioning has flipped as a result, for real money to long from short and for hedge funds to neutral from long.”