‘We are bullish on the dollar’ - BAML

Dhwani Mehta FXStreet

In an interview with Bloomberg TV, Bank of America Merrill Lynch’s (BAML) FX strategist, Kamal Sharma, argued in favor of further US dollar gains in the coming months.

Key Quotes:

“Trump's decision to withdraw from Iran deal is also contributing to USD gains.

We're bullish on the dollar.

We also see that US rates will go higher as well.

We're bearish on the pound over the near-term.

There are macro and political headwinds that will keep GBP under pressure.

Such as weak economic data and Brexit negotiations.

Euro losses expected to continue with EUR/USD likely to drop to 1.15 by end-Q2.

ECB has been relatively benign towards exiting QE.

Europe is facing fund repatriation to the US in coming weeks due to tax reform.

That should help to propel USD higher.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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