Forex Flash: Broader US dollar recovery expected - Nomura

As the post GFC correlation between the US Dollar and risk assets disconnects, and with equity inflows picking up, which according to Nomura, "has been important for dollar dynamics, the dollar should benefit eventually."

The bank notes, however, that "ongoing monetary easing and a weaker US data picture in Q2 may delay a broader dollar recovery." The bank adds: "We intend to review longer-term global USD forecast within the next one to two weeks, incorporating stronger USD inflows."