UBS turns more bullish on U.S. greenback, sees euro – Money News
Investing.com — A stronger U.S. greenback is prone to dominate world international exchange markets by the second half of 2026, in keeping with UBS, which has raised its forecasts for the dollar in opposition to a number of main currencies as greater U.S. rate of interest expectations and resilient financial fundamentals proceed to underpin demand.
The bank now expects the euro to weaken additional, decreasing its end-2026 forecast for EUR/USD to 1.12 from 1.14 beforehand, whereas projecting the Japanese yen to slip to 165 per greenback by each the top of the third quarter and year-end. UBS argues that latest repricing in U.S. rates of interest, mixed with expectations for added Federal Reserve tightening, ought to proceed to assist the greenback regardless of already elevated positioning.
UBS mentioned the U.S. Dollar Index (DXY) has damaged to new highs for 2026 and will take a look at the 102 degree final seen in May 2025. While long-dollar positioning has elevated, the bank believes it stays effectively under extremes reached in 2024, leaving room for added positive factors.
The firm maintained a constructive view on sterling, anticipating the British pound to stay resilient amid a steady fiscal outlook and supportive capital flows. It forecasts EUR/GBP to strengthen towards 0.85 by year-end, citing the currency’s enticing carry profile and restricted impression from home political developments.
By distinction, UBS turned more cautious on the Australian greenback, slicing its end-2026 AUD/USD goal to 0.68 from 0.74. The downgrade displays softer Australian financial information, diminishing assist from interest-rate differentials, and diminished expectations for hedging demand from home pension funds.
The bank additionally expects additional near-term weak point within the Swiss franc because the Swiss National Bank’s dovish stance encourages its use as a funding currency for carry trades, although it believes structural components ought to help the franc get better some ground later within the yr.
Related articles
UBS turns more bullish on U.S. greenback, sees euro and yen weakening additional
Stay forward of the curve with the most recent developments within the finance world! Our web site is your final vacation spot for finance information, offering complete updates, in-depth market evaluation, and skilled insights into the fast-evolving financial panorama. We carry you each day protection on every little thing from progressive investment methods and market trends to main bulletins which can be reshaping the financial industry.
Discover how these trends are remodeling the economic system! Visit us repeatedly for partaking and informative content material by clicking right here. Our meticulously curated articles discover market actions, strategic investment alternatives, and key milestones in right this moment’s dynamic finance area.
