BofA: European investors flip to short USD, driving EUR/USD breakout ...Middle East

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BofA: European investors flip to short USD, driving EUR/USD breakout
Bank of America notes that European investors, who were previously driving the USD rally earlier in 2024, have now shifted to short USD positions. This shift coincides with a recent EUR/USD breakout above 1.10.Key Points:Shift in European Investor Behavior:Earlier in 2024, the USD rally was significantly driven by demand from investors outside of US trading hours, particularly Europe-based investors.As of August, foreign demand for the USD has decreased, with Europe-based investors unwinding their long USD positions and recently flipping to short USD.Impact on EUR/USD:Both US and Europe-based investors are now cumulatively net long EUR/USD for the year. This shift has contributed to the rece

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