UBS see Biden policy changes as less supportive for the US dollar (EUR/USD forecast higher)

Author: Eamonn Sheridan | Category: News

UBS Wealth Management has projected once again a rising EUR/USD. 

On the US side cite:

  • new Biden administration may reconsider USD-supportive policies of the Trump 4 years  -  tariffs, tax cuts and deregulation
  • "Not all will be implemented, but the general direction of policy change will likely reduce support for the USD"

On the EUR side:

  • to rise at a slower pace than in previous quarters
  • due to new Europe and UK lockdowns, rebound in US yields
  • "Confirmation that tough lockdown measures are no longer needed would be the precondition for EUR/USD to jump to the 1.25-1.30 range"

Forecasts:

  • 1.24 for March
  • 1.25 for June
  • 1.27 for September & December





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