EUR/USD: Looking For USD To Stage A 'Sizable' Move Higher In The Near-Term - BofAML



Bank of America Merrill Lynch FX Strategy Research discusses the USD outlook and maintains its bullish bias on the greenback for the first half of the year.
"In general, our USD forecasts look for a sizable move higher in the near-term, including our contrarian EUR-USD target of 1.10 at the end of Q1. But what those forecasts represent in general is our broader expectation of corporate repatriation flows pushing up the USD as they bring back profits from overseas, similar to what we saw during the Homeland Investment Act back in 2005.
We expect much of the money overseas to result in a USD-positive flow, and also for companies to bring back money fairly quickly to take advantage of higher interest rates in the US," BofAML argues.

Comments