Upbeat NFP not a reason to long US dollar – Nomura

Analysts at Nomura offered their response to the US Non-farm payrolls report and its implications on the US dollar.

Key quotes

“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.

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 if US-China trade tensions escalate.”