FXstreet.com (Barcelona) - UBS continues to favour the safe-haven dollar against the euro and pound, although the the risk of the Fed resuming quantitative easing following the latest FOMC minutes, keeps the bank prudent.
"It suggests the dollar will be on the defensive ahead of Jackson Hole next week and the next FOMC meeting on September 12-13" said Mansoor Mohi-uddin, Head of Foreign Exchange Strategy at UBS Macro Research.
"Hope that the ECB will clarify its commitment to resume government bond purchases at its September 6 meeting also may allow the euro to trade in a firmer 1.20-1.30 range over the next month. But we would be wary of chasing the dollar lower unless the Fed does agree to substantial asset purchases" adds Mr. Mohi-uddin.
"It suggests the dollar will be on the defensive ahead of Jackson Hole next week and the next FOMC meeting on September 12-13" said Mansoor Mohi-uddin, Head of Foreign Exchange Strategy at UBS Macro Research.
"Hope that the ECB will clarify its commitment to resume government bond purchases at its September 6 meeting also may allow the euro to trade in a firmer 1.20-1.30 range over the next month. But we would be wary of chasing the dollar lower unless the Fed does agree to substantial asset purchases" adds Mr. Mohi-uddin.
