Bank of America / Merrill Lynch with a few quick thoughts on the US dollar
I posted earlier their thoughs on USD/CAD: USD/CAD - BoA / ML warn CAD longs are at risk, look for retest of 1.33
But, they say ... broader US dollar upside risks remain
- we think that upside risks to the US dollar remain underpriced
- Successful passage of US tax reform will add to already-solid US growth, potentially produce a steeper fed funds path and prompt a wave of repatriation activity by US corporates
- The current level of USD risk premium - evidenced by USD discount status to rate differentials - is unjustified, in our view.
