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What is the outlook for USD?

Here is their view, courtesy of eFXdata:

Nomura Research notes that  speculators look ready to take risks again with global macro hedge funds increasingly selling USD in their hunt for yield.

As the curtain falls on this month’s “sell in May” impetus, we are seeing early signs of a resumption of risk-taking.  It has been a bumpy May, with investors at times taking a disliking to such developments as the spike in inflation signals, the market turbulence in Taiwan, and the cryptocurrency sell-off. However, the S&P seems to have quickly recovered from what turned out to be a shallow dip (down to as far as 4,056 on 12 May),” Nomura notes.

“To all appearances,  there is still quite a bit of dip-buying demand among investors looking ahead to an expected resumption of economic activity,” Nomura adds.

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