Fed unlikely to hike this year?

The USD will probably remain on the sidelines during the next few weeks as markets continue digesting last week's FOMC's statement which was considered somewhat more dovish than anticipated. 

"The Fed will refrain from hiking this year as uncertainty in global financial markets will not disappear anytime soon. Although there is some retracement in volatility", says Barclays. 

The secular downtrend in economic activity and the opacity of FX policy in China will continue weighing in emerging markets and commodity currencies.

"For G3 currencies, the EUR should lead the way down as more easing comes through before year-end. The second reading of 2Q15 GDP will likely show a 3.7% q/q saar", added Barclays.