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23 Sep 2013
Flash: One more quarter of USD weakness - UBS
FXstreet.com (Barcelona) - We should be expecting one more quarter of US Dollar weakness, notes Mansoor Mohi-uddin, Head of Foreign Exchange Strategy at UBS Macro Research.
Key Quotes
"The Federal Reserve's decision to delay tapering its asset purchases is set to keep the dollar weak for the next three months. Once the central bank signals it will start cutting its bond purchases at the start of the new year, we expect the longer term uptrend for the greenback to resume."
"But for now we see position unwinding, uncertainty about the Fed's intentions and next month's US fiscal risks keeping the dollar at current levels close to its lows for the year against the euro, pound and Swiss franc."
"The exception is the yen where risk-seeking behavior and expectations of further Bank of Japan easing are set to make Japan's currency the weakest amongst the majors for the rest of the year."
Key Quotes
"The Federal Reserve's decision to delay tapering its asset purchases is set to keep the dollar weak for the next three months. Once the central bank signals it will start cutting its bond purchases at the start of the new year, we expect the longer term uptrend for the greenback to resume."
"But for now we see position unwinding, uncertainty about the Fed's intentions and next month's US fiscal risks keeping the dollar at current levels close to its lows for the year against the euro, pound and Swiss franc."
"The exception is the yen where risk-seeking behavior and expectations of further Bank of Japan easing are set to make Japan's currency the weakest amongst the majors for the rest of the year."