JPMorgan's Meera Chandan has pivoted to a tactically bullish USD stance, driven by 'US exceptionalism' and a realization that bearish sentiment has become excessively crowded.
Key Takeaways
- 1.JPMorgan has turned tactically bullish on the US Dollar, shifting from the previous consensus bearish stance.
- 2.The USD is supported by 'US exceptionalism,' characterized by positive inflation surprises and strong economic data relative to the Eurozone.
- 3.Bearish USD sentiment is currently crowded and approaching extreme levels, which historically signals a reversal.
Table of Contents
- Changing
- More dollar positive
- USD has been held down
- CB expectations
- Screens cheap
- Follow the MoMo
- US equity outperformance helps
- Sentiment
- Underperformed
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Authors
Meera ChandanBulik
Securities
DXYEURUSD
Themes
Contrarian Sentiment TradeMonetary Policy DivergenceUS Exceptionalism
Regions
North AmericaEuropeUKUnited States