The US dollar remains under pressure as systematic investors increase selling on signs of a weakening price trend, according to the latest analysis by Bank of America.
The bank's model expects a reversal of outflows from the US dollar to other major currencies, with the British pound, Australian dollar and Canadian dollar expected to receive buying support.
The US dollar's weakness comes in line with a decline in US Treasury yields, with futures market trends pointing to a potential reversal in the bond market.
In global equity markets, the trend remains heavily long, supported by low volatility, with room for additional exposure if volatility continues to ease.
In commodities, trend funds remain long gold and silver, while selling pressure persists in the soybean market despite a temporary price recovery.
