A Dow Jones piece in which they highlight UBS’s 7 reasons for being bearish EUR/USD
- Fed will raise rates before ECB next year
- U.S. investors are heavily exposed to foreign markets and will repatriate funds back into dollar
- Euro to be hurt by renewed risk aversion as central banks around the world tighten monetary poicy
- Euro zone sentiment will be damaged by the fiscal troubles of its weakest members
- Foreign central bank reserve managers haven’t been buying euro on dips recently
- Sentiment remains euro bullish, so it’s vulnerable to a surprise
- EUR/USD remains above its fair value of 1.20/1.25
Meanwhile back at the ranch EUR/USD is ticking higher, presently at 1.4340.