Soc Gen Sees Market Relief Rally In Q4 That Won't Last

The U.S. dollar may continue to rise, particularly against commodity-based emerging market currencies. Such dollar strength might not be due to Fed tightening, says a Forex Weekly research note from Societe Generale Cross Asset Research, but rather economic weakness abroad.

Soc Gen: Sell euro and British pound along with its volatility, as Fed bullets weaken

In recommending selling the euro and British pound “and its volatility,” the report predicts both currencies will trend towards the lower end of their range. In such an environment the U.S. dollar will strengthen not because of Fed tightening, but due to further central bank easing.

The report, written October 1,...