eFXdata reports that Nordea Research discusses the USD outlook and flags a scope for a 15% decline over the coming year.

"We have talked about the prospects of a materially weaker USD, once we are out of this Corona mess for some weeks in a row now. And on some metrics, it could look like the price dynamics have started to change for the USD. Everyone and their mother will get all the USD liquidity they need from the Fed, which could turn out to be a material gamechanger for the USD," Nordea notes.

"We don't rule out a >15% weakening of the USD over the coming year. The Fed has teed up a pretty remarkable trend-shift should relative central bank balance sheets start to matter for EUR/USD spot again. In any case we think it makes sense to start considering an increase of USD hedge ratios to shield against the risk of a materially weaker USD," Nordea adds.