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

Financial Times Published Updated Global Markets & Finance
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Affected assets and topics

CURRENCY

Why it 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.

Expected market reaction

Bearish Confidence 80% How confidence is read Horizon: Short term Impact: Moderate

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

Evidence trail

Evidence
Source Financial Times
Claim Investors expect ‘Warsh trade’ to weaken dollar, BofA survey shows
AI inference Bearish · 80%
Generated 2026-02-17 11:24

AI provenance

Analysed by Llama 3.1 8B Instant (Groq) Methodology v1.0 Generated
Technical identifiers
Provider tag
groq-llama-3.1-8b-instant
Analysis version
groq-llama-3.1-8b-instant
Article id
46556

Original source

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

Read the full article on Financial Times

Original article published by Financial Times on February 17, 2026. Analysis and insights provided by AnalystMarkets AI.

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