JPMorgan has gone short the dollar against the euro and the yen, but don't blame the greenback.
"It is a view around risks concerning both the ECB and the Bank of Japan next month," Sally Auld, a fixed income and foreign-exchange strategist at JPMorgan, told CNBC's "Street Signs" on Tuesday.
"We broadly see the U.S. dollar as a range trade for the rest of the year."
Auld noted that while JPMorgan's economists expected both the BOJ and the European Central Bank would ease at their policy meetings next month, both central bank decisions posed market risks.
"The risks around the calls are not that we're going to get more easing than our economists expect, but that we might actually get less," she said, noting that some central banks may have begun to indicate that unconventional policy measures were nearing the end of the line.
"If we were starting to get a sense that these central banks were really starting to worry that there really wasn't much left in the tank, investors are pretty good at extrapolating small changes in policy into big ones and you could see both euro and yen actually do better against the dollar," she said.
Auld also noted that she doesn't expect the U.S. Federal Reserve would tighten policy until December, leaving few catalysts to potentially boost the greenback.
To be sure, Auld warned about entering into fresh dollar short positions while heading into the Jackson Hole meeting.