Back
4 Mar 2015
US dollar to keep appreciating vs. its rivals – BAML
FXStreet (Edinburgh) - In the view of analysts at BAML, the greenback remains well poised to outperform its main competitors.
Key Quotes
“Despite the medium-term picture for policy divergence playing out largely as we expect, long USD positioning is still significant, while US data surprises have decelerated aggressively”.
“We think the trade is vulnerable to shocks as its unlikely both legs of the decoupling trade (higher equities and USD) can continue without creating problems”.
“We continue to like our trade selling EUR/USD downside to position for consolidation before USD up trend resumes”.
“We leave our core G3 forecasts unchanged, expecting EUR-USD and USD-JPY
to finish the year at 1.10 and 123 respectively. Outside of the G3, in dollar-bloc, we bring expected AUD depreciation forward, now expecting AUD-USD to finish 2015 at 0.73 (from 0.77)”.
Key Quotes
“Despite the medium-term picture for policy divergence playing out largely as we expect, long USD positioning is still significant, while US data surprises have decelerated aggressively”.
“We think the trade is vulnerable to shocks as its unlikely both legs of the decoupling trade (higher equities and USD) can continue without creating problems”.
“We continue to like our trade selling EUR/USD downside to position for consolidation before USD up trend resumes”.
“We leave our core G3 forecasts unchanged, expecting EUR-USD and USD-JPY
to finish the year at 1.10 and 123 respectively. Outside of the G3, in dollar-bloc, we bring expected AUD depreciation forward, now expecting AUD-USD to finish 2015 at 0.73 (from 0.77)”.