📝Investors' Dollar Demand Rises On Thursdays And Fridays: BofA Strategy

The U.S. dollar has posted the majority of this year's gains during Thursdays and Fridays, risky assets have seen the opposite over these sessions. In our view, investors are more reluctant to hold risky assets over the weekend due to (1) the on-going war in Europe, (2) the withdrawal of central bank liquidity increasing ‘price gap’ risks, which supports demand for the U.S. dollar. Also, the USD tends to retrace gains on Wednesdays, especially during Federal Reserve interest rate decisions as markets "sells the fact" after the event.

-BofA Strategy