12 Jul 2013
Flash: Broad based USD gains to resume - Nomura
FXstreet.com (Barcelona) - The economic divergence between the US and eurozone (and to some extent the UK) is much larger compared with any point in the past ten years, notes Nomura FX Strategist Jens Nordvig, adding this can be seen in the divergences in labour data and Industrial production.
Nordvig went on saying: "We need to go back to the early 1980s and 1990s, to observe similar large divergences, which were times of broad based USD rallies, with the exception to this dynamic being 1994, when USD was weak due to idiosyncratic factors and we view 1994 as an outlier." The medium term view, according to the Nomura Strategist, "continues to be broad based USD gains in G10 space for the rest of the year."
Nordvig went on saying: "We need to go back to the early 1980s and 1990s, to observe similar large divergences, which were times of broad based USD rallies, with the exception to this dynamic being 1994, when USD was weak due to idiosyncratic factors and we view 1994 as an outlier." The medium term view, according to the Nomura Strategist, "continues to be broad based USD gains in G10 space for the rest of the year."