A multi year downturn in the dollar in the making? - Nomura

Analysts at Nomura are bearish on the dollar.

Key Quotes:

"Dollar is at start of new downtrend But my bullish euro view was not just premised on a relative politics story, rather it was based on the argument that the dollar is the midst of a multi-year trend turn (down)."

"The dollar is overvalued, the current account deficit is growing and the rest of the world is catching up to tightening policy. This should propel the euro to 1.15 to 1.20 by the end of the year."

"Importantly, like previous major dollar trends, any dollar weakness would end up being broad-based, so the dollar would weaken against the yen, sterling and risk currencies."