USD/CHF Forecast: Unpacking Bank of America’s Dire Month-End Outlook

Key Points

1. Bank of America predicts USD/CHF selling pressure as large funds rebalance portfolios at month-end, often selling USD to adjust asset allocations.

2. Month-end flows in the forex market are driven by performance benchmarks, such as US equities versus international indices, influencing currency demand.

3. Traders should monitor equity market performance, analyst forecasts, and technical levels to anticipate USD/CHF movements during month-end rebalancing.

4. Risk management strategies, including stop-loss and take-profit orders, are crucial due to potential volatility from month-end flows.

5. Other factors like economic data and geopolitical events can also impact USD/CHF, making BofA's forecast one of many considerations for traders.