Investors expect ‘Warsh trade’ to weaken dollar, BofA survey shows

Market Intelligence Analysis

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Why This Matters

A recent survey by BofA shows that a majority of fund managers expect the nomination of Jerome Powell to lead to further declines in the US dollar, a phenomenon referred to as the 'Warsh trade'. This sentiment is driven by concerns that Powell's policies will be dovish, leading to a weaker currency. The market impact is expected to be significant, with investors positioning themselves accordingly.

Market Impact

Market impact analysis based on bearish sentiment with 80% confidence.

Sentiment
Bearish
AI Confidence
80%
Time Horizon
Short Term

Article Context

Note: This is a brief excerpt for context. Click below to read the full article on the original source.

Majority of fund managers think Trump’s nominee to run Federal Reserve will spark further declines for US currency

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Full article on Financial Times
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Original article published by Financial Times on February 17, 2026.
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