USD likely to resume its upward trajectory after Fed lift-off

Greenback is likely to resume in its upward trajectory versus the emerging market and high-beta G10 currencies as there are high expectations for an interest rate hike by US Fed in its December meeting.

The NFP report released last week is in line with gradual normalization path as the wage inflation is continuing around 2-2.5%. Most of the expectations for further USD gains in 2016 come from EUR weakness and EM, with the latter still facing substantial obstacles in coming year. 

EUR is likely to continue to move upside as the positioning becomes less stretched while the currencies are to risky assets underperform, in short term. 

"We would not expect meaningful reaction in the markets coming from the data this week in the US... We expect both releases to confirm the positive momentum of the US consumer and do not think they will change the mind of the FOMC that it is time to lift off", says Barclays in a research note.