Institutional investors show bearish signs on the U.S. Dollar

Institutional investors’ negative outlook on the U.S. Dollar has resulted in net positions of 47 billion USD, the highest since December 2023. Year-to-date, the dollar has dropped 9.5%, marking its weakest performance in three decades.

With upcoming labor market data indicating potential economic softening, analysts expect sustained pressure on the dollar. While BofA Global Research maintains a bearish view, they recognize possible short-term risks that could bolster the dollar.