The Most Underpriced Macro Trade?

Underpriced Dollar Upside

The market continues treating the Dollar like a weakening macro story, yet the underlying backdrop increasingly points the other way. Stronger US data, resilient equities, sticky inflation, and widening rate differentials are all quietly building a much more constructive setup for the USD beneath the surface.

Both BofA and Goldman argue that Dollar upside risks remain materially underpriced. The bigger question now is whether DXY can finally break out of the massive range that has trapped it for nearly a year.