Nomura on the USD - the NFP report is not a reason to turn bullish on it

A Nomura response to the nonfarm payroll number out of the US on Friday.

The better than forecast NFP result is not a reason to turn to a long US dollar position. The EUR sell-off result in response to the release was due to a crowded long position only. Nomura remain bears on the USD vs. EUR.

Says that there may be reasons ahead to turn bullish on the US dollar:

• if lockdowns extend in Europe
• if the European Central Bank cuts interest rates
• and is US-China trade tensions escalate

But that the risk of any of these is low in the short-term.