Continue to expect broad dollar depreciation - Nomura

Analysts at Nomura explained that they continue to expect broad dollar depreciation. 

Key Quotes:

While Fed hikes may look underpriced, the dominant story is other central banks catching up with the Fed in policy normalisation . 

"Furthermore, a weak dollar policy and US political risks will continue to weigh on the dollar. Meanwhile, the euro area recovery continues. 

We expect EUR/USD to test 1.35 by end-2018, and for the euro to outperform GBP and CHF. 

We expect SEK to appreciate versus the European crosses, and continue to highlight near-term risks in NOK. 

In the commodities space, we expect USD/CAD to grind lower, and AUD/NZD to move higher. 

The JPY trend is likely to depend on the progress of foreign central banks’ policy normalisation, which will support yen crosses."