Bank of America Global Research discusses its USD bias into next week's June FOMC meeting.

"We stay bullish USD (vs. EUR & CAD) but recognize two-way risk heading into the FOMC meeting," BofA notes.

"We think a hawkish outcome is more likely, but Fed pricing & USD longs reflect this, making a dovish surprise the "pain trade". Warsh will be the focus but also the SEP projections - recent communication suggests the median FOMC view has turned hawkish. It would be a surprise if this does not translate to a meaningfully higher dot plot distribution," BofA adds.