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2026-02-16 22:25:58
[Dollar Positions Fall to 14-Year Low, Market Bearish Sentiment Reaches Historical Extreme] (1) The latest foreign exchange and interest rate sentiment survey released by Bank of America shows that in February, global asset management institutions’ net holdings of the US dollar fell to the lowest level in 14 years, and the scale of short bets on the US dollar surged to the highest level since January 2012, setting a new extreme level since the bank began keeping records. (2) Against this backdrop, fund managers’ dollar allocation ratio has fallen below the low point set in April 2025, and funds are showing a continuous outflow from dollar assets. After US President Trump nominated Kevin Warsh to serve as the chairman of the Federal Reserve, market concerns about the independence of the Federal Reserve have cooled down, but this positive signal has not translated into dollar buying power, nor has it been able to boost optimistic expectations for US assets. (3) The survey also pointed out that the US job market is showing more signs of weakness, which is considered by the surveyed institutions as a key risk dragging down the performance of the US dollar, and is also the core logic of the current consensus among institutions to be bearish on the US dollar.
