Trade talks remain in the spotlight. How will the dollar react?
Here is their view, courtesy of eFXdata:
Nomura Research discusses the sentiment outlook over the next few weeks going into year-end.
“Global equity achieved a risk rally as expected on 10-15 October. We expect little clear direction in sentiment until around 5 November, but we see this as a period in which the market will be laying the foundation for the next risk-on phase (which we expect to begin on or around 5 November).
Zooming out to a longer-term perspective, US equity sentiment seems to have formed a double bottom with troughs in August and October, and this may be a positive sign. This pattern suggests that US equity supply and demand is likely to take a turn for the better toward the end of the year,” Nomura notes.
“On the other hand, uncertainty still abounds in areas such as the global economy and US-China trade issues, but if sentiment follows its usual distinctive rhythm, the risk of a predictable selloff in US equity may have retreated somewhat,” Nomura adds.
For lots more FX trades from major banks, sign up to eFXplus
By signing up for eFXplus via the link above, you are directly supporting Forex Crunch.
Share
