Bank of America stated that investor sentiment toward the dollar has turned neutral for the first time since the first quarter.
TL;DR
Bank of America reports investor sentiment on the US dollar is now neutral for the first time since Q1, ending an eight-month bearish trend. This shift may be due to year-end risk constraints and lack of US data, potentially increasing market volatility.
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According to Bank of America's latest global investor Odaily, investors' exposure to the US dollar has turned neutral for the first time since the beginning of the year, ending an eight-month period of bearish sentiment. "While this may partly reflect risk constraints ahead of year-end, the lack of US data may also have played a role," said the Bank of America team, including Adarsh Sinha. "Given that pricing in the December FOMC meeting has been fairly balanced, this could lead to increased market volatility as the data returns."