JP Morgan discusses the USD outlook amid the USD debasement theme.

"Given recent interventionist moves into Yen and Treasury markets, the Dollar Debasement, aka 'Sell America' theme has seemingly returned. This theme has implications for bond yields, FX, and Equities. A dovish Fed is a key missing ingredient, and we would also flag that this theme may not have the same strength or duration as previously witnessed," JPM notes.

"In FX, the move in the USD, proxied by DXY, has been a -2.6% decline, dragging the index below the 100-level. The move appears mostly played out as our JPM FX Strategy team flag that they would not chase the move lower from current levels. In USD/JPY, it has moved below the 160 level that continues to act as a catalyst for intervention and may see additional pressure from increasing BOJ rate hike expectations," JPM adds.