FXStreet reports that economists at Nordea discuss US dollar prospects.

“As the Fed seems ‘hands off’ for now with regards to US 10y Treasury bonds, then we would argue this is good news for the dollar. The twin deficit idea can be boiled down to either i) US yields needs to rise, or ii) the USD needs to weaken so as to attract enough foreign funding of the US budget and current deficits. It thus follows that higher US yields means less downside pressure for the dollar.”

“In terms of relative growth forecasts, or in terms of revisions to said forecasts, the USD should be in a very strong spot – rising 20% yoy instead of falling 15% YoY.”