Bank of America Securities say there has been a shift in relative monetary policy outlooks which will support the dollar.
- another USD rally looks likely over a tactical horizon
- BoA see the strongest bullish USD signals against CHF, EUR & SEK
- And add they see no bearish USD signals on any pairs
- The bank also add that the higher-beta currencies that have outperformed (and lower-beta currencies underperformed) are unsustainable, and are looking for a reversal
Further out, medium-term, BoA is bullish USD/CHF and USD/JPY
- bearish USD against most others
Longer term:
- bearish USD
- but neutral AUD/USD, NZD/USD and USD/CHF
