UBS see Biden policy changes as less supportive for the US dollar (EUR/USD forecast higher)
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"
- 1.24 for March
- 1.25 for June
- 1.27 for September & December