In his latest FX&MM commentary, Nordine Naam sees strength in the US dollar and uncertainty in the euro

Uncertainties over the European crisis and the extent of the slowdown in Chinese growth suggest the US dollar should be firm in the short-term. Furthermore, the imminent third quarter reporting season in the US is likely to fuel volatility in riskier assets, which in turn ought to bolster the greenback. Meanwhile, the EUR/USD could manage to rebound towards 1.34 if Spain asks for the EFSF, before retreating on the back of the bad macro and micro news-flow expected from the euro zone during October.

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