Free Trial

BofA: China Clouds USD Outlook

FOREX

Bank of America write “we are bullish USD but a lot hinges on whether China rolls out meaningful, coordinated stimulus in coming weeks.”

  • “China reflation sentiment is close to 2022 lows and this has been the dominant driver of USD since the February 2023 (peak reopening optimism), even more so than Fed policy.”
  • “Despite this, our analysis suggests the USD has lagged the deterioration in China sentiment albeit far more within G5 than commodity currencies.”
  • “CHF, GBP and EUR in particular account for the bulk of DXY underperformance and consequently offer better risk-reward USD longs if China sentiment remains weak.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.