What Happens When the U.S. Dollar Is No Longer A Hedge Fund Hotel?

``Bank of America Merrill Lynch's proprietary positioning data suggests there's still another major shoe to drop for the greenback. In a note to clients, FX Strategists Myria Kyriacou and Athanasios Vamvakidis illustrate that hedge funds' long position in the U.S. dollar remains substantial relative to the past 12 months and to other investors... "Real money is now short USD for the year, but hedge funds remain long, pointing to risks for a further squeeze USD lower," they conclude... After largely treading water to open the year, the U.S. dollar has weakened as market participants have had doubts about the extent to which monetary policy stateside can diverge from the rest of the world...''