Still expecting modest USD upside amid market turbulence - BofA
Strategy from Bank of America
Bank of America Global Research discusses the USD outlook and maintains a core bullish bias into year-end.
"Markets have re-focused on the pandemic, as the Delta variant is leading to renewed measures to fight the virus. Moreover, the Delta variant is also highlighting the recent slowdown in US vaccination rates, which could hamper the expected re-opening of the economy. Meanwhile, inflation also continues to surprise to the upside," BofA notes.
"Ultimately, we continue to expect G10 FX to wind up with
modest USD upside at the end of the year, led by our end-2021 EUR-USD
forecast of 1.15, as we think the US outlook is still most likely to
outperform. Still, our G10 FX views are relatively idiosyncratic, with USD upside against G4, but some downside against the Dollar bloc," BofA adds.