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Thursday saw BofAML highlight "President.....>

DOLLAR
DOLLAR: Thursday saw BofAML highlight "President Trump's frequent comments
against the strong USD in recent weeks. His statements about the USD are
becoming more frequent and more targeted, and are combined with increasing
attacks on other central banks for doing too much and the Fed for doing too
little. We see a risk of further escalation of such USD rhetoric and even direct
currency intervention, as the US economy is weakening and the USD is overvalued,
which should put a ceiling on the USD for now. However, we also see a risk that
the Trump administration may decide to abandon the "strong USD policy," which
would not violate G20 commitments and could be a game changer. We do not believe
the historically low FX vol is pricing such risks."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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