USD: USD Strong against EM. Bullish. With the Fed minutes leaving the option of a September rate hike open, the USD will be extremely data sensitive. Weak global demand is likely to continue weighing on manufacturing figures. Slightly lower-than-expected July CPI figures support our economists’ view of a December rate hike. With the rate hike having negative second-round effects on EM, we remain bullish on the USD against EM and commodity currencies. EUR: A Good Time to be a Funder. Bullish. We believe EUR is likely to outperform over the next few weeks. The risk-off environment is likely to drive repatriation flows, ... (full story)