Technical Analysis

BofA heatmap on FX drivers and directions for 2023


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

For bank trade ideas, check out eFX Plus. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. Get it here.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button