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.