10 Jun 2013
Flash: Buy USD dips again despite QE tapering not imminent - UBS
FXstreet.com (Barcelona) - Even though the US Dollar lost significant ground last week, it is no surprise that Mansoor Mohi-uddin, Head of FX Strategy at UBS Macro Research sees the deterioration in value as an opportunity to buy the currency.
Mohi-uddin argues that Friday's US payrolls number suggests this year's underlying uptrend in the greenback remains intact, adding that "the jobs report wasn't weak enough to raise fears over America's modest recovery nor was it strong enough to suggest tapering by the Federal Reserve is imminent."
In view of Mohi-uddin, the mere speculation that the Fed may start to slow down QE through H2 is likely to buoy the US dollar, "particularly following the sharp wash out of positions this week in USDJPY and USDCHF" the UBS Analyst concluded.
Mohi-uddin argues that Friday's US payrolls number suggests this year's underlying uptrend in the greenback remains intact, adding that "the jobs report wasn't weak enough to raise fears over America's modest recovery nor was it strong enough to suggest tapering by the Federal Reserve is imminent."
In view of Mohi-uddin, the mere speculation that the Fed may start to slow down QE through H2 is likely to buoy the US dollar, "particularly following the sharp wash out of positions this week in USDJPY and USDCHF" the UBS Analyst concluded.