BofA's Woo: bullish on dollar - BloombergTV

Bank of America's David Woo, head of global rates and FX research, spoke on BloombergTV today and gave his thoughts on the US Dollar.

Key highlights

Woo believes that 'interest insensitive' flows in 2017 have been dragging on the USD, the beginning of which was cross-border equity flow, when 2017 saw large amounts of foreign purchases of European equities over US equities, but now that flow has reversed, and cash is moving from the EU back into US stocks, and Woo added that this flow has helped with valuations.

Woo's second flow is 'reverse diversification', money that moved into emerging markets is beginning to come back now that emerging market currencies are beginning to 'blow up'.

April's numbers from Germany and France are disappointing, which discredits the bad weather story that was used to float Q1's disappointing figures, although Woo did cite trade with China as a potential concern, as an all-out trade war  would be Dollar-negative.