EUR/USD Price Target Hiked by UBS as Fed Rate Hikes Come into Doubt

UBS, a leading financial institution, has raised its price target for EUR/USD to 1.20 from 1.17 and lifted its stop-loss to 1.15 from 1.13.

This move follows the firm's assessment that US economic data have cast doubt on potential US rate hikes while European releases have shown more strength than markets previously anticipated.

According to UBS, the Federal Reserve is likely to keep rates steady in September, closing the window for potential tightening, while the European Central Bank is expected to deliver a hike.

The firm believes that markets are pricing out Fed rate hikes and European data remain supported by fiscal easing, resulting in EUR/USD trending higher as a result of these factors.