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‘We are bullish on the dollar’ - BAML

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.”

AUD/USD resumes the slide, heading towards 0.74

The AUD/USD is continuing to tumble in early Wednesday, and the pair kicked into a new 12-month low heading into the Tokyo session at 0.7425. The Dol
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NZD/USD: Bulls rescued by oil-price rally, 0.7000 back on sight

The NZD/USD pair is seen making minor recovery attempts in the mid-Asian session, having found solid bids once again near the midpoint of the 0.69 han
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