US trade/ tariffs will be a multi-quarter theme and support for USD. Our bias remains long USD given its growth and yield advantage, but the trading approach needs to be more tactical. A (short) window has opened up for carry/ high beta recovery. Carry still favours the dollar but several high beta have started to screen more attractive. Funders, particularly CHF, will be vulnerable if DM yields stay elevated. DM central banks next week but most ex-Fed not meaningful for FX.
Speakers:
Meera Chandan, Global FX Strategy
Arindam Sandilya, Global FX Strategy
James Nelligan, Global FX Strategy
Patrick Locke, Global FX Strategy
This podcast was recorded on 24 January 2025.
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