BofA survey: Investors slash euro FX exposure by a record margin

According to a Bank of America survey of fund managers conducted in October, euro positioning saw its largest month-over-month decline on record. Strategists including Ralf Preusser wrote in a report released Friday: "Euro exchange rate sentiment and positioning have clearly fallen sharply, once again entering bearish territory." They said that in the previous survey round in September, the positioning had turned bullish. The strategists also noted: "Sterling exchange rate positioning and sentiment continue to hover near the bearish levels seen in recent months." 40% of investors believe that a 100 basis point spread between 10-year French government bonds and German government bonds represents fair value, up from the previous 85 basis points. The Bank of America survey was conducted from October 2 to 7, with 34 fund managers responding.