Hedge Funds Expand Dollar Bear Trades Through April 10 via Morgan Stanley Model
Hedge funds added to bearish dollar trades through April 10 using Morgan Stanley’s proprietary model, marking a swift shift from last month’s year-high bullish positioning. Morgan Stanley analysts note the dollar index fell 1.9% in April following a 2.4% March gain and forecast concentrated medium-term weakness versus major peers.
1. Hedge Funds Increase Bearish Dollar Positions
Hedge funds have added to bearish dollar trades through April 10 using Morgan Stanley’s proprietary FX model, reversing from a year-high bullish stance recorded last month.
2. Morgan Stanley Model Signals Sentiment Shift
The model indicates risk reversal premiums have narrowed to levels last seen on February 27 and shows tactical dollar positioning shifting from the most bullish in over a year to roughly neutral in recent days.
3. Dollar Index Performance and Outlook
The dollar index climbed 2.4% in March before dropping 1.9% in April, including an eight-day losing streak; Morgan Stanley analysts project focused medium-term weakness against major currency peers.