Flash: EUR/USD lifted by sentiment - UBS

FXStreet (Córdoba) - The UBS analyst team notes that the recent spike of EUR/USD is driven by the clearing of existing long-USD positions rather than a fundamental new trend.

Key Quotes

"Markets are currently questioning the sustainability of the US economic upswing. We still see a lot of evidence that bad weather caused some negative macro-economic surprises, and that there is no structural downturn in the US economy".

"Therefore we believe that the recent spike of EUR/USD is driven by the clearing of existing long-USD positions rather than a fundamental new trend".

"We still recommend medium term investors to sell the rallies in EUR/USD".