Bank of America's latest survey re sentiment on FX and rate markets:

  • USD expected to hit its 2025 peak this quarter

Reflecting increased concerns around

  • US economic growth slowdown
  • Doubts over US "exceptionalism" persisting
  • “More investors now simply lack conviction for the rest of the year”
  • High USD dollar valuation
  • Rate differentials moving narrower in favour of other FX
  • Long USD positions the most crowded trade
weekly dxy candle US dollar peak 2
Source: Forex Live