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BANK OF AMERICA EXPECTS FOREIGN-EXCHANGE VOLATILITY TO PICK UP AS US ECONOMIC DATA RELEASES RESUME AFTER THE GOVERNMENT SHUTDOWN. STRATEGISTS SAID THE DOLLAR WILL SWING MORE AS RATE EXPECTATIONS DIVERGE BETWEEN THE US AND OTHER MAJOR ECONOMIES. THE BANK NOTED THAT CURRENCY CALM HAD STEMMED FROM NARROWING YIELD SPREADS AND DELAYED DATA, WHICH MUDDIED DOLLAR SENTIMENT. INVESTOR POSITIONING ON THE GREENBACK HAS TURNED NEUTRAL, WITH SHORT BETS ON STERLING AND CROWDING INTO THE YEN DESPITE ITS WEAKNESS.

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