November 30, 2022

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This global recovery is an exception to the ‘sell USD’ pattern

1 min read

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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