EURUSD to see another drop below parity, GBPUSD to fall toward 1.10 – UBS

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EURUSD to see another drop below parity, GBPUSD to fall toward 1.10 – UBS
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EURUSD to see another drop below parity, GBPUSD to fall toward 1.10 – UBS EURUSD GBPUSD DollarIndex USDCHF Banks

has fallen since last week’s milder-than-expected inflation data. Nonetheless, economists at UBS expect the greenback to stay on a solid foot for the time being, dragging EURUSD and GBPUSD down to 1.00 and 1.10, respectively.“We think the near-term risks remain tilted toward a stronger US Dollar. We continue to rate the greenback as most preferred in our foreign exchange strategy, alongside the Swiss Franc, another safe-haven currency.

“We also recommend selling upside risk in EURUSD and the downside risk in the US Dollar versus the Yen as a short-term yield-enhancement strategy, given the pick-up in foreign exchange volatility.”Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets.

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