USD Trend: Persistent Upward Movement According to Bank of America analysis, the USD has posted gains in 11 of the last 12 weeks. This strong performance suggests that trend-following CTAs may have become excessively concentrated in their positions, particularly in the FX market. CTAs' Risk Allocation CTAs may have overweighted risk in the FX market. Bank of America’s model indicates that USD long positions are stretched compared to every currency they track, except for the Japanese Yen (JPY). Conclusion The concentration of USD long positions is currently at an excessive level, and CTAs may face pressure to adjust their risk allocations.