Bank of America highlights that EUR positioning is broadly long, but notes Real Money investors are still underexposed, leaving room for further upside—particularly as equity flows and FX hedge adjustments shift in the euro’s favor.

Key Points:

Conclusion:

While EUR positioning has grown more crowded in recent weeks, Real Money investors remain underweight, creating scope for additional EUR strength—especially if equity allocation trends and FX hedging flows materialize. The EUR remains supported by broadening diversification away from US assets and the relative attractiveness of European markets.

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