In the long run, it's euro over dollars, says UBS

The dollar could see some short-term rebound, but over a longer time horizon the single currency has the better prospects

European Central Bank
UBS: Markets are increasingly pricing in a long path of policy normalisation for the European Central Bank.

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The dollar could see a short-term boost from the Federal Reserve in the next few months, but in the long run the greenback’s prospects remain bleak against a buoyant euro, says Lefteris Farmakis, a macro strategist at UBS, which topped FX Week’s 12-month forecast last week.

With a euro that has strengthened fast against the dollar since the beginning of the year, Farmakis now sees EUR/USD trading at 1.17 in three months and 1.16 in 12 months’ time. While the US c

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