A strategy note from Bank of America / Merrill Lynch citing
- ex-US normalization remains only a future hope, its not currently a fact
- absence of convincing evidence global cycle faces an imminent improvement
These keep the USD at the forefront, positive carry is still a powerful incentive for it
More:
- BoA not seeing a US recession any time soon
- orderly Brexit, US / China trade de-escalation will send the USD lower, but these are still some way off
- remains bearish CAD
- bullish yen, and NOK
- For EUR/USD to rise to 1.20 later in 2019 needs better global growth
