By eFXdata — Apr 25 - 11:30 AM
Bank of America Global Research summarizes its bias on G10 FX.
"The USD has been well behaved in a manner of speaking - both our fundamental (macro drivers) and agnostic (PCA) frameworks show the DXY index is roughly in line with estimated levels. This convergence may partly explain the drop in FX volatility this year. Within G10 FX, GBP stands out as overbought due to seasonals and BoE expectations; we like to fade recent strength," BofA notes.
"Meanwhile, commodity currencies (ex CAD) generally look oversold, especially NZD - while we are bearish, this suggests caution on near-term NZD shorts," BofA adds.
BofA Global Research