Market Intelligence News

BofA timezone analysis: US dollar buying during European hours was the theme

Analyzing Bank of America's Timezone: The US Dollar was Predominately Bought During European Hours

Bank of America Global Research has conducted a time-zone analysis to review the performance of FX in 2022. This study divided a 24-hour day into 3 distinct time zones: Asian hours from midnight GMT to 8am GMT, European hours from 8am GMT to 1pm GMT, and US hours from 1pm GMT to midnight GMT. Subsequently, BofA calculated the total gains for the year in each time zone.

European investors have accumulated a large holding of USD positions since 2022, which they have yet to relinquish. As the Federal Funds Rate moves closer to its endpoint, we could experience an increase in USD supply during the trading hours of Europe in 2023, as suggested by BofA.

Analysis of daily FX spot activity broken down by time zone has indicated that during the first three quarters of 2022, the USD experienced a significant rally against G10 FX largely during European trading hours. Conversely, in the fourth quarter of 2022, USD selling was driven predominantly by US trading hours. BofA observed that despite US investors taking a bearish stance on the USD in the final quarter, changes in price during European trading hours were less pronounced.

eFX Plus offers bank trading strategies that can be accessed through a 7-day free trial. After the trial, the basic package is available for $79 a month and the premium package for $109. Find out more here.

Andrew Johnson is a seasoned journalist with a keen interest in the commodity market. He is a regular contributor to, where he covers the latest news, trends, and analysis related to the commodity industry. With years of experience under his belt, Andrew has established himself as a reliable source of information on the global commodity market.