Categories: Markets

EUR/USD and GBP/USD will reach 0.96 and 1.12 by the end of the year – UBS

EUR/USD and GBP/USD will reach 0.96 and 1.12 by the end of the year – UBS

The Dollar Index (DXY) hit a new 20-year high last week. Although it has since receded slightly, the index’s recovery so far this year is still above 13%. In the opinion of UBS economists, the dollar is likely to continue rising in the short term.

The dollar should reach its maximum in the next six months

“We believe the dollar is likely to continue to rise in the near term and have recently revised our currency forecasts to reflect a stronger dollar in the near term.”

“By the end of the year, we expect the EUR/USD and GBP/USD hit 0.96 and 1.12, respectively. We also anticipate that the USD/CNY reaches 7.00 in the coming months“.

“But in the medium term, we think a highly valued USD should peak in the next six months, with markets watching for any shift in the Fed’s stance, Europe’s energy crisis and China’s growth woes.”

Source: Fx Street