Expensive dollar to remain on the back foot – UBS

Whereas the euro is fundamentally cheap and will remain strong for the foreseeable future

dollar-euro
Contrasting currencies: “Generally speaking, we expect the euro to be strong on a long-term basis as it is cheap, and the dollar is by and large expensive” – Themos Fiotakis

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The euro’s spectacular 10 big-figure rise since April and subsequent push through the $1.20 barrier is likely to create a headache for the European Central Bank’s (ECB) inflation targets, says Themos Fiotakis, co-head of foreign exchange research and strategy at UBS, which topped last week’s 12-month currency forecast tables.

Some of the velocity behind the move can be attributed to the subsiding of the political uncertainty that weighed on the single currency at

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