This global recovery is an exception to the 'sell USD' pattern - BofA

Author: Adam Button | Category: News

Bank of America believes the dollar has room to run

Bank of America believes the dollar has room to run

Bank of America Global Research discusses the USD outlook and maintains a core bullish view through year-end. 

"The US economy is set to outperform by an historically-wide margin in 2021 and 2022, making this global recovery an exception to the "sell USD" pattern. We expect supportive capital flows - particularly direct investment - into USD on the back of wide growth and interest rate differentials," BofA notes. 

"We expect USD appreciation concentrated against lower-beta FX, in particular EUR, where we see policy normalization as being compromised. We are constructive commodity currencies experiencing large terms-of-trade gain," BofA adds.

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