Risk-reward argues for buying the US dollar against EUR, GBP And JPY – RBS

From analysts at RBS
We wrote last week that "Yellen talking about lower long-term rates isn’t the same as dampening expectations of a near-term rate increase. We therefore still believe risk/reward favours USD upside against the EUR, GBP and JPY. Discussions about lower terminal rates should ensure that EM FX out-performs the G4 currencies". Yellen kept the door open for possible action as soon as September. She signalled growing confidence in the outlook for activity given the rebound in labour markets and the solid rise in household spending in Q2.