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Investors bullish on Trump's playbook are winners of GOP's health-bill failure, BofAML says

The House GOP failure to push through its Obamacare replacement bill was possibly the best news for traders who believe in President Donald Trump's economic agenda, Bank of America Merrill Lynch's David Woo said Wednesday.

"We save ourselves having to spend another five more weeks doing the impossible: trying to push through health-care reform," Woo said on CNBC's "Squawk Box." The head of global rates and currencies research said April should be a good month to rebuild long dollar positions and short trades on U.S. interest rates.

With health care on the back burner, Trump gained some leeway to focus on his pro-business promises, like looser regulations, lower tax rates and fiscal stimulus. "So I think he emerged as the biggest winner of last week's basically failure," Woo said.

After failing to rally support for the GOP bill, Trump said last week the administration would focus on slashing taxes.

Treasury Secretary Steven Mnuchin said Friday he will push for "comprehensive" tax reform by Congress' August recess.

Mnuchin added that Trump's objective for tax reform for individuals is cutting taxes for the middle class, not the top 1 percent of earners.