Home USD: 3 Risks For USD Bears In 2021; What’s The Trade? – BofA
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USD: 3 Risks For USD Bears In 2021; What’s The Trade? – BofA

What is the outlook for the US dollar in 2021, in particular, USD/CHF?

Here is their view, courtesy of eFXdata:

Bank of America Global Research  likes structural long USD/CHF exposure in 2021 via 6m call spread.

We identify three key risks to the prevailing USD bearish view. 1- Cyclical weakness & risk aversion. 2- Inflation & potential rates shifts. 3-  Positioning,” BofA notes.  

“While we are bearish USD as part of our base case, we believe it prudent to hedge this consensus view as part of an effective FX strategy.  Long USD/CHF exposure through a lower-cost options structure with potentially high leverage provides investors with an effective hedge,” BofA adds.  

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Kenny Fisher

Kenny Fisher

Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.