G10/Global: dollar reigns supreme - Nomura

Analysts at Nomura explained that this week dollar strengthening continued following Trump’s victory.

Key Quotes:

"While US yields edged higher, Japanese yields remained anchored, with the BOJ sticking to its yield curve targeting policy. Today, the BOJ announced its first new operation to buy JGBs at a designated price, seeing USD/JPY react positively as the JGB curve bull steepened.

We think the impact can be bigger in the medium term, with the diverging rates spread likely to continue, increasing the possibility of sustained JPY weakness (and more so
than EUR)."