BLBG: Euro’s Advance Against Dollar ‘May Soon Find a Cap,’ UBS Says
The euro is unlikely to extend its gains against the dollar without a revival in global demand, according to UBS AG, the world’s second-largest currency trader.
“The European Union and the European Central Bank desperately need global demand to rebound soon, even as the domestic economy is getting less help from fiscal and monetary stimulus than most other economies, to take the pressure off the economy and the currency,” Nizam Idris, a currency strategist at UBS in Singapore, wrote in a note today. “Else, the euro is merely feeding on the weaker dollar and may soon find a cap without significant domestic drivers.”
