UBS Forecast: Bad Time for US Exceptionalism to End, EUR/USD Could Strengthen to 1.23

  • The Euro to Dollar (EUR/USD) exchange rate strengthened to 3-year highs above 1.1550 before a correction to around 1.1380 as equities recovered and the dollar stabilised. UBS considers that the policy shift and notable underlying dollar vulnerability can drive EUR/USD to 1.23 during this year.