Bank of America Merrill Lynch Research presents the latest signals from flows, positioning and short-term valuations.
"Flows: Bullish EURUSD and USDCAD, bearish USDCHF. Recent outsized CAD flow support is unsustainable and vulnerable to reversal, whereas EUR and CHF flows are beginning to look unsustainably unsupportive.
Positioning: Bullish NZDUSD, USDSEK and USDCHF, neutral all else. Caveat: CFTC readings are very stale due to the US government shutdown. The USDSEK reading should be viewed with more confidence as it is LCBF-based.
Short-term valuation: Neutral all round. Exchange rates remain with the range of values roughly consistent with high-frequency fundamental variables," BofAML notes.