BofA Fund Manager Survey:

• 34% of investors expect oil to trade between $80-90 a barrel by end 2026, 28% see $70-80, 22% see $90-100
• 58% of investors still expect Fed to cut rates in next 12 months, 46% expect ECB to hike in next 12 months
• Global equity allocation dropped to net 13% overweight, down from 37% in February
• Net 36% of investors expect a weaker global economy, a month ago a net 7% expected a stronger economy

The latest BofA Fund Manager Survey reveals a notable shift in investor sentiment, indicating increasing worries about a weaker global economy and a significant drop in equity allocations. The expectation of forthcoming Fed rate cuts and ECB hikes signals a divergence in monetary policy outlooks, which could influence FX trends, particularly between USD and EUR. Overall, these insights may point to a cautious approach in the markets moving forward, particularly in equities and fixed income.