UBS says there is "a chance the euro will drop below parity"

Reuters have published their latest poll of analysts which shows, in brief:

a strong majority of more than 70% of strategists, or 40 of 56, who answered an additional question said the dollar's strength hasn't yet peaked.

Analysts see further hikes ahead from the Fed, underpinning the USD.

UBS have some remarks in the piece:

• "In the very long run, let's say two or three or four years from now, the dollar will probably be considerably weaker. But in the 12-month timeframe we're looking at relatively small moves,"
• "In the short term we're looking for the dollar to maintain its strength, especially against the euro. So we think there's a chance the euro will drop below parity,"

Link to the Reuters piece is here for more.