UBS Forecasts Euro Recovery Towards 1.18
The Euro-Dollar exchange rate has dipped to 1.1574 after its late-August recovery lost momentum, according to recent data.
However, UBS sees potential for EUR/USD to recover towards 1.18-1.20 due to limited policy divergence keeping FX volatility contained.
This means that the Euro is not expected to experience a powerful, one-way rally, but rather a gradual move back into higher levels.