Bank of America Global Research constructed a G10 heatmap of likely G10 FX drivers this year.
"FX markets are already close to the end of 2023 consensus forecasts, but this is a year with plenty of known unknowns. We are concerned about the outlook of risk assets in the short-term, whether sticky inflation during a recession will keep central banks hawkish,"BofA notes.
"We constructed a G10 heatmap, looking at likely G10 FX drivers this year. Although we expect USD strength in the short-term, on the back of risk-off without a central bank policy put, our analysis is positive for CAD, AUD and NOK vs. CHF, USD and SEK, which is consistent with our end-year forecasts," BofA adds