USD Outlook

The US is the economy closest to begin normalizing monetary policy, supported by relatively strong growth and a robust labor market. However, it is believed that the Fed will refrain from hiking this year as uncertainty in global financial markets will not subside anytime soon. Despite this delay, the USD is expected to outperform all major currencies, as the global slowdown and opaque FX policy in China will continue to weigh on emerging markets and commodity currencies. 

"For G3 currencies, the EUR should lead the way down as we expect more easing before year-end", says Barclays.