24 Mar 2015
M&A continues to support USD – BAML
FXStreet (Barcelona) - Strategists at BofA-Merrill Lynch, note that the USD will remain supported over the medium-term by the improving net M&A inflow in the US economy.
Key Quotes
“The recent developments in cross-border M&A flows continue to support the USD.”
“More specifically, …the continued improvement in net US-Euro Area flows has provided another important flow dynamic that has underpinned USD sentiment. This is particularly relevant given the continued narrowing of the US current account deficit which currently stands at just under 2.5% of GDP.”
“Though short-term sentiment on the dollar has been shaken by the March FOMC meeting, the trend improvement of net M&A inflow into the US economy should continue to provide medium-term support, helped by the recent regulatory changes that have made an impact on transatlantic deals.”
Key Quotes
“The recent developments in cross-border M&A flows continue to support the USD.”
“More specifically, …the continued improvement in net US-Euro Area flows has provided another important flow dynamic that has underpinned USD sentiment. This is particularly relevant given the continued narrowing of the US current account deficit which currently stands at just under 2.5% of GDP.”
“Though short-term sentiment on the dollar has been shaken by the March FOMC meeting, the trend improvement of net M&A inflow into the US economy should continue to provide medium-term support, helped by the recent regulatory changes that have made an impact on transatlantic deals.”