Bank of America Global Research maintains a bullish bias on the USD in the near-term, expressing this view via short GBP/USD and long USD/CAD positions.

"The DXY is unchanged year-to-date, and near-term USD upside risks look underpriced. Looking through the lens of strong US economic data (absolute and relative), US equity outperformance, risks of eventual Fed hikes, and relatively clean positioning on aggregate, it's striking to us how low USD sentiment appears," BofA notes.

"Clearly the market is more focused on the prospect of war resolution and expectations for a dovish Fed, and undoubtedly many entered the year in the bearish USD camp, much like we did. But in the near-term, we question how much lower this can take the USD, leaving the balance of risks pointing to the upside. We prefer to express this view via long positions vs. GBP (capturing political risks) and CAD (capturing over-priced BOC and USMCA risks)," BofA adds.