23 May 2025 | Dollar

Currency agreement talks put pressure on dollar — BofA Securities

Currency agreement talks put pressure on dollar — BofA Securities

Bank of America (BofA) Securities reports that discussions of potential currency agreements have become a key market focus. Meanwhile, US fiscal policy no longer provides the same level of support for the dollar.

While G7 finance ministers hold their meeting, speculation is growing about possible joint exchange-rate statements. BofA Securities notes the dialogue has shifted from broad concepts like the "Mar-a-Lago Accord" to bilateral talks.

Reaching substantive currency agreements among major developed nations remains highly unlikely, BofA analysts emphasize. But even preliminary discussions have exacerbated the dollar’s decline.

Separately, Congressional debates over President Trump’s tax and spending plans are heightening concerns about rising US debt. As Investing reports, these worries are pushing long-term Treasury yields higher.

Elena Berseneva MarketCheese
Period: 31.05.2026 Expectation: 4500 pips
Selling EURUSD from resistance
20 March 2026 33
Period: 27.03.2026 Expectation: 900 pips
USDCAD resistance looms as overheating sets in
20 March 2026 34
Period: 27.03.2026 Expectation: 1050 pips
AUDCAD thrives on monetary divergence
20 March 2026 21
Period: 31.03.2026 Expectation: 800 pips
Buying Brent crude with $115 in view
20 March 2026 39
Gold sell
Period: 31.03.2026 Expectation: 600 pips
Selling gold upon breaking $4,560
20 March 2026 33
Period: 30.04.2026 Expectation: 2000 pips
SPX selloff to follow once it consolidates below $6,600
20 March 2026 19
Go to forecasts