UBS: Markets are increasingly pricing in a long path of policy normalisation for the European Central Bank.
CLICK HERE TO DOWNLOAD THE PDF
The dollar could see a short-term boost from the Federal Reserve in the next few months, but in the long run the greenback’s prospects remain bleak against a buoyant euro, says Lefteris Farmakis, a macro strategist at UBS, which topped FX Week’s 12-month forecast last week.
With a euro that has strengthened fast against the dollar since the beginning of the year, Farmakis now sees EUR/USD trading at 1.17 in three months and 1.16 in 12 months’ time. While the US c