Investors are once again showering all their love on the US dollar as most other currencies and cheap/risky assets get battered. USD f lows rose high in the past week, markets saw investors showing favor for only a couple of currencies against the dollar while selling or shorting all others. Hedge funds' long positions in USD have reached their highest YTD levels.
BAML's latest report on currency flows calls the scenario a "tsunami of USD flows". According to data from BAML's proprietary flows through Monday-Friday of last week, its forex strategists, Vamvakidis and Kyriacou speculate that the chunk of buying into USD took place after Fed's meeting on Thursday. The conclusion is drawn based on the fact that...
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