📝Split Congress Is Favorable For High-Beta FX: BofA Strategy

A gridlock scenario of a split Congress is favorable for high-beta currencies like the Aussie and the loonie, with the dollar weakening in 2023, but with temporary risk-off episodes where the U.S. dollar may have short-term rallies. We have noted there's been a sharp reversal of crowded trades, with the euro and Canadian dollars the most crowded. - BofA Strategy