Deutsche Bank: If Walsh avoids signaling policy, carry trade opportunities may arise

According to Odaily, George Saravelos, Global Head of FX Research at Deutsche Bank, stated that Federal Reserve Chairman Kevin Walsh aims to "avoid expressing views on this year's monetary policy as much as possible, thereby minimizing the impact on market pricing." If Walsh succeeds in doing so, the U.S. dollar is likely to weaken, and "the path for summer carry trades will be wide open." In a note to clients on Wednesday, Deutsche Bank indicated that as the limited market impact from the Iran conflict fades, it is "difficult not to be bullish" on risk assets. The bank noted that global economic growth forecasts have barely changed since last year, and this resilient growth outlook is "not particularly a bullish signal for the dollar." Deutsche Bank also believes that Europe "holds the greatest potential" for upward revisions in growth expectations over the coming months.