Quotes from Barclays Capital:
-We remain bullish on the USD, on both a multi-month and multi-year perspective, trends we expect to generate significant headwinds against EM currencies.
-We revised our forecast for EURUSD to parity by the end of this year as well as revising lower many of our EM FX forecasts. Our bullish USD story is predicated on US growth outperformance and the Fed's differentiating monetary policy stance.
-While the potential for a delay in Fed rate hikes is a risk to our USD view, the bigger than expected ECB bond purchase program and growing Europe political risks suggest that the EUR is on a sustained downward trend. Against this background, we remain wary of being long EM FX versus USD.
