Simple's Green Room

[Joe1984]

UBS - "The euro has peaked at 1.38 against the dollar for the year. First, October's very weak Eurozone inflation data has strongly increased the risk of the European Central Bank cutting interest rates. Second, the latest Federal Open Market Committee meeting did not rule out the Fed tapering asset purchases even as early as this year.
America's economy will need to bounce back from last month's government shutdown for the Fed to start lowering its pace of quantitative easing. That would lead to a broader recovery in the dollar, in line with our bullish longer-term view. But in the interim the greenback is unlikely to fall further now as foreign central banks including the ECB turn more dovish. This week's key points for currencies are:
- dollar bears beware, earlier Fed tapering likely
- ECB to cut in the week ahead
- BoJ dissent signals further easing in future
- BoE dovishness will cap Cable
- three issues for SNB to consider
- RBA may call for lower currency again in the week ahead
- RBNZ keeps tightening bias, capping AUDNZD"