JP Morgan earlier, also liking the dollar:
Analysts at UBS meanwhile also assess the near-term risk as being for a strong US dollar. UBS also like the CHF. See both USD and CHF as continued safe havens and thus are attractive given they see a return to risk aversion:
- We think there is a high chance that risk aversion will return and recommend investors prepare for another drop below parity for the Euro, and GBP/USD to fall toward 1.10
- We also recommend selling upside risk in EURUSD and the downside risk in the US Dollar versus the Yen as a short-term yield-enhancement strategy, given the pick-up in foreign exchange volatility.
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Given the wild flow of headlines we are seeing UBS could be correct.
I posted this earlier too, weekly US dollar index. Its had a pullback:
