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USD, EUR, JPY, GBP, CAD: Outlooks For The Coming Week - Morgan Stanley
USD: Keeping September on the Table. Bullish. USD remains our favorite long in the G10 space. The latest Fed meeting kept September on the table, though we expect they will hike in December. However, by keeping September on the table, this highlights the Fed’s desire to hike rates in 2015. Wages, inflation, and employment indicators will be particularly important between now and the eventual hike. We highlight the upcoming PCE and ISM in particular. We expect USD strength to be focused against EM and commodity currencies. EUR: Trading with Risk. Bearish. EUR is increasingly driven by risk appetite, in our view. ... (full story)