EURUSD weekly chart
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:
Conclusion:
BofA observes that the shift from long to short USD positions by European investors has played a crucial role in the recent EUR/USD breakout. This change in market dynamics suggests that investor sentiment has turned against the USD, potentially influencing further movements in the currency pair.
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