BLG : UBS Lowers Forecast for Euro Against Dollar on Debt Crisis, End of Fed QE2
UBS AG, the third-biggest currency trader, cut its one-month forecast for the euro against the dollar, citing the deepening European sovereign-debt crisis and the end of the Federal Reserve’s asset purchases.
“We expect the euro to stay under pressure for longer,” currency strategists including Geoffrey Yu in London wrote in a client report yesterday. “A quick return in confidence seems unlikely in the current environment, especially with growth momentum in larger euro-zone member states also showing weakness. The Fed will end QE2 as planned, and officials appear to have set a high hurdle for any further easing.”
UBS cut its one-month forecast to $1.40 from $1.48. The 17- nation currency was at $1.4069 as of 6:38 a.m. in London.
To contact the reporter on this story: Paul Dobson in London at pdobson2@bloomberg.net
To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net
