The US dollar seems a bit confused, looking for a new direction. What’s next for the greenback? Here is the view from Bank of America Merrill Lynch: Here is their view, courtesy of eFXnews: Bank of America Merrill Lynch FX Strategy Research advises USD bulls to be patient in light of the following 5 reasons: “1- It could take few more months for the market to move toward the Dot Plot. The June hike is not a given, in our view, and to a large extent will depend on the data before the actual meeting, including in particular the next NFP and wage earnings. 2- It could also take few more months to know whether the US will reform its tax system and how. The USD roller-coaster since the US elections, to a large extent, has to do with market expectations about the chances of tax reform. 3- We would expect ECB QE tapering to be a more important theme during this summer, ahead of the September meeting. Although our economists expect a very slow pace-reducing the monthly purchases to 40bn euro and stretching QE until the end of 2018-it will be hard for the USD to rally against the EUR before we get these details. 4- Similarly, the BoJ will need to do more pushback against market expectations for early exit from their yield-targeting framework to persuade the consensus that the central bank will stick to it until inflation reaches its target, from currently negative core inflation. 5- The market remains bullish EM. Although we have been flagging risks from stretched long positions in EM, our EM flows remain strong and investors buy EM dips when they get them,” BofAML argues. As such, BofAML advises USD bulls to be selective and sell JPY, expecting diverging monetary policies, and GBP ahead of difficult Brexit negotiations. For lots more FX trades from major banks, sign up to eFXplus By signing up to eFXplus via the link above, you are directly supporting Forex Crunch. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Opinions share Read Next Dollar is fully data dependent, NFP awaited [Video] Yohay Elam 6 years The US dollar seems a bit confused, looking for a new direction. What's next for the greenback? Here is the view from Bank of America Merrill Lynch: Here is their view, courtesy of eFXnews: Bank of America Merrill Lynch FX Strategy Research advises USD bulls to be patient in light of the following 5 reasons: "1- It could take few more months for the market to move toward the Dot Plot. The June hike is not a given, in our view, and to a large extent will depend on the data before the actual meeting, including in particular the next… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.