The unwind in long-term investors’ overweight in US equities this year has largely benefitted European stocks. It is telling, however, that in light of the recent turbulence in markets that investors have been unwilling to add to their newfound overweight in European stocks and instead have returned to benchmark.

The Euro may now face a similar challenge. Investors have been slower to unravel their underweight in the currency, but are now back to benchmark for the first time in three years. The question now for April is whether USD sentiment has deteriorated to such an extent that investors are willing to overweight the single currency.