October 23, 2024 at 11:16PM
UBS are forthright with their view on the US dollar – “Unattractive” – say to sell bouts of dollar strength to reduce exposure.
UBS cite:
The Fed remains set to lower rates amid lower inflation.
US fiscal concerns are likely to keep the US dollar under pressure.
in the event of a second Trump administration … tariffs are likely to hurt US consumers and GDP more than the rest of the world, and deficit concerns may also surface with potential tax cuts
irrespective of who wins the presidency on 5 November, the growing US federal deficit is likely to come under the spotlight
Other currencies should see additional support
we still expect a growth recovery in Europe going into 2025
spillover effects from China’s stimulus efforts and the potential for more risk-on sentiment after the US election should support other G10 currencies, including the euro, the British pound, and the Australian dollar
This article was written by Eamonn Sheridan at www.forexlive.com.