Dollar Jumps 2.1% as Wall Street Banks Turn Bullish on Fed Outlook

MacroDigital Finance Impact 4
โดย GuruFocus·Read original
Summary · why it matters

The dollar is gaining fresh momentum as major Wall Street banks turn more bullish on the US currency. The Bloomberg Dollar Spot Index has risen 2.1% so far in June, trading near its highest level since November and up 1.7% this year. Strategists at JPMorgan Chase, Bank of America, and Goldman Sachs have expressed renewed confidence in the greenback after Fed Chairman Kevin Warsh emphasized price stability, fueling expectations for possible US rate hikes. JPMorgan's Meera Chandan said the Fed has activated the bullish dollar outlook, as other central banks may not move fast enough to narrow the rate gap with the US. Bank of America lowered its year-end euro forecast to $1.15 from $1.20, expecting the Fed to raise rates three times this year, while Goldman Sachs said the dollar could strengthen against lower-yielding and oil-sensitive currencies but possibly lag high-carry currencies such as the Mexican peso, Brazilian real, and Australian dollar.

Impact on stocks 3

Financials▲ · 2 stocks
Bank of America Corp
BAC
▲ PositiveMonetaryrelevance

Bank of America's bullish dollar outlook and rate hike expectations align with its own strategist views, supporting its FX business.

Goldman Sachs Group Inc
GS
▲ PositiveMonetaryrelevance

Goldman Sachs expressed renewed confidence in the dollar, which could benefit its trading and advisory operations.

Digital Finance & Tokenization▲ · 1 stocks
JPMorgan Chase & Co
JPM
▲ PositiveMonetaryrelevance

JPMorgan's bullish dollar outlook and rate hike expectations support its FX trading and interest income.

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