According to a Bank of America survey of fund managers conducted in October, euro positioning saw its largest month-over-month decline on record.

Strategists including Ralf Preusser wrote in a report released on Friday: "Euro exchange rate sentiment and positioning have clearly fallen sharply, once again entering bearish territory." They noted that in the previous survey round in September, positioning had turned bullish.

The strategists also pointed out: "Sterling exchange rate positioning and sentiment continue to hover near the bearish levels seen in recent months."

40% of investors believe that a spread of 100 basis points between 10-year French government bonds and German government bonds represents fair value, up from 85 basis points previously.

The Bank of America survey was conducted from October 2 to 7, with a total of 34 fund managers responding.