📝 Dollar Strength Likely to Extend Into September: J.P. Morgan FX Strategy

August’s USD surge is likely to extend into September. Supportive Q4 seasonality aside, continued dollar strength rests on an upturn in US data surprises, concerns around financing of rising European / UK twin deficits, broadening Asian export weakness, and signs of dollar shortage in pockets. Recommend not fading dollar strength. We remain short euro, pound and kiwi. - J.P. Morgan FX Strategy