Esteemed currency analyst and investor Jens Nordvig said he has liquidated his long dollar positions and is poised to short the greenback.
The Exante Data chief executive told CNBC he’s especially looking to sell the greenback against emerging-market currencies.
The Bloomberg Dollar index has risen 4% in the past five months — a big move by currency market standards — and hit an 11-month high near the end of September.
Nordvig says the rally is spent.
“We have come far enough already,” he said. “I think we’re going to have a more sideways trade. … We’re finding a new equilibrium essentially.”
Anticipation of Federal Reserve tightening, economic turmoil in China and rising energy prices helped spark the dollar’s rise.
But inflation is a worry, Nordvig said. Consumer prices jumped 5.4% in the 12 months through September. And the Fed’s favored inflation indicator, the personal consumption expenditures price index, climbed 4.3% in the 12…