UBS maintains a constructive outlook on the USD in the short term due to resilient US macro data. The report highlights tactical opportunities in currency pairs such as USDILS, EURJPY, and NZDCHF.
Key Takeaways
- 1.Recent resilient US macro data, including labor market indicators, support a well-bid USD in the near term.
- 2.Geopolitical conflict in the Middle East has had a muted impact on currency market volatility, which remains low.
- 3.Strategists favor yield pickup opportunities by selling USDILS upside, selling EURJPY upside, and selling NZDCHF downside.
Table of Contents
- The week ahead: Is it time to re-engage in USD longs?
- FX opportunities of the week
- Yield pickup opportunities of the week
- Comments on select currencies and commodities
- Data calendar
- Global asset class preferences definitions
- Appendix
Document Preview
Access the Full Report
Get unlimited access to institutional research reports with a 14-day free trial.
Authors
Pietro SantinDominic SchniderTeck Leng TanConstantin BolzClémence DumoncelGiovanni StaunovoTilmann Kolb
Securities
DXY
Themes
Geopolitical impact on marketsUS Dollar strength
Regions
Middle EastUnited StatesIranIsrael