US: USD has seen its best days – Nordea

The launch of the QE-ternity program from the Fed will likely prove to be a material negative USD gamechanger down the road, according to analysts at Nordea.

Key quotes  

“A lot of new USDs will be printed, which is usually a USD negative story, but we are not sure that QE matters a lot in the short term, if curfews are prolonged and disinflationary risks remain high.”

“So far, the price action since the Fed launched the QE-bazooka has been supportive of inflation expectations, which is a negative USD story.” 

“We remain firm that a negative USD bias is very warranted over the next 6-12 months (10% weaker USD is not out of the question), but we think it is too early to really buy into the negative USD story.”