Forex Flash: USD expected to strengthen – BofA Merrill Lynch

The greenback, gauged by the US Dollar Index, is extending its rally post-FOMC minutes, hovering over 81.50 as we enter the last part of the NA session. Market participants accelerated their exodus from the risk-associated assets on Thursday, as the USD showed no sign of weakness.

Analysts at BofA Merrill Lynch suggested, “The reasons for the dollar’s appreciation are mostly positive and suggest it may be embarking on a strong secular uptrend. Absent a crash in the US bond market, our house view remains very constructive on the USD”.