Bank of America: The US dollar may strengthen in the coming months
Jinse Finance reported that according to Paul Ciana, a technical strategist at BofA Global Research, late last week the ICE Dollar Index (DXY), which measures the US dollar against a basket of six major currencies, saw its 50-day simple moving average cross above the 200-day simple moving average. In technical analysis, this is known as a "golden cross" and is considered a bullish signal. This encouraging development comes at the tail end of a year of weak performance for the dollar. Since the beginning of 2025, the dollar index has fallen by about 9% in total. On Monday, the index dropped 0.3% to 98.30, only slightly above its lowest level of the year. BofA strategist Ciana pointed out that this is the 39th "golden cross" signal for the dollar since 1970. For investors looking for signs of a dollar rebound, this signal suggests the dollar may strengthen in the coming months. In a written report, Ciana stated: "Overall, the 'golden cross' signal has always been positive for the dollar." He noted that once a "golden cross" appears, the dollar tends to rise over the following 20 to 60 trading days.
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