Investing.com – Demand for the US dollar (USD) saw a significant surge, especially against the emerging market currency (EMFX), as investors ended 2024 long USD, according to Bank of America.

However, the remaining G10 currencies were met with a neutral attitude from investors, while there was a low position on the EM FX market.

Demand for USD-EM currencies was particularly pronounced in the fourth quarter of 2024. Hedge fund positioning was particularly tight during this period, and real money positioning appeared lighter.

In the case of G10 currencies, investors ended 2024 long both USD and Australian Dollar (AUD), while the Canadian Dollar (CAD), New Zealand Dollar (NZD) and Swiss Franc (CHF) were low. Demand for USD against the euro (EUR) and British pound (GBP) was particularly mighty in the fourth quarter.

The Norwegian Krone (NOK) and CAD were the most traded currencies in 2024. Hedge funds took their maximum long positions on AUD and USD and their maximum low positions on CAD.

The real money was very long GBP, long AUD and USD, and low NOK, NZD and EUR. USD options sentiment improved significantly in the fourth quarter against both EUR and GBP.

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