BofA says USD rally needs fresh catalyst as quant signals turn more balanced; remains tactically bullish fundamentally

The bank says that the post-June FOMC USD rally has stalled after softer US labour data, with quant signals suggesting vulnerability to a near-term reversal It cites option flow and skew, which have both shifted towards USD puts; additionally, its technical matrix shows several bearish reversal signals across major USD crosses, it's analysts write BofA says it remains tactically bullish USD fundamentally, but says GBPCHF looks attractive, supported by carry, GBP-positive flow/skew signals, bullish technicals and SNB resistance to CHF strength.