Bank of America: Dollar's rise is accompanied by an increase in "asymmetric risk"

BofA said the dollar had risen since the US Federal Reserve's December meeting despite narrowing spreads against most other global currencies, which could be a "red flag" for bulls at a time when sentiment is one-sided. "The dollar remains supported despite the inverse spread," BofA FX strategists Alex Cohen, Adarsh Sinha and Janice Xue wrote in a note on Tuesday. "Congested positions and increasingly consistent FX sentiment expose asymmetric risks."