BofA Views GBP/CHF Pullback as Bullish Opportunity and Sees AUD Outperforming G10 Currencies by 2025 End
Bank of America (BofA) analysts are projecting that the Australian Dollar (AUD) will outperform all other G10 currencies by the end of 2025, reversing their earlier bearish stance. This shift comes amid recent developments in U.S. tariff policies, which have significantly impacted global equity markets and currency movements.Despite the anticipated impact of these tariffs, BofA sees a bullish outlook for the AUD. Analysts attribute this to factors such as the expected depreciation of the U.S. Dollar (USD) and the delayed effects of China's stimulus measures. Furthermore, the Reserve Bank of Australia's monetary policy remains cautious, with only two rate cuts predicted for 2025.
The outlook is favorable for AUD/CNH, with a target price set at 4.89, due to the currency pair's lower correlation with the USD. BofA also anticipates that USD/CNH could rise to 7.5 by the end of the quarter, although the analysts caution that any disorderly devaluation of the Chinese Yuan (CNY) could present risks to their forecast.
BofA Sees Bullish Opportunity in GBP/CHF Amid Tariffs-Induced Pullback
Analysts at Bank of America (BofA) have flagged a recent dip in the GBP/CHF currency pair as an attractive entry point for investors with a bullish outlook. This recommendation comes after the U.S. government's announcement on April 2, imposing new tariffs that caused significant short-term market fluctuations.
The U.S. has implemented a 31% reciprocal tariff on Swiss imports and a 10% tariff on British goods. Despite these developments, the Swiss Franc (CHF) has seen an uptick against other European currencies and the U.S. Dollar (USD). Market experts attribute this rise to global investors flocking to safe-haven assets amid growing market uncertainty.
BofA analysts believe that the temporary disruption in the GBP/CHF uptrend will likely reverse once the current market volatility settles, making the pullback an appealing opportunity for those expecting the pair to resume its upward trajectory.
For now, the overnight decline in GBP/CHF provides a potential entry level for those optimistic about its future performance, according to BofA's market analysis.
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