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UBS analyst: The US dollar seems overvalued in the short term, it is suggested that investors take advantage of the opportunity to reduce their exposure to the US dollar

UBS analyst: The US dollar seems overvalued in the short term, it is suggested that investors take advantage of the opportunity to reduce their exposure to the US dollar

Bitget2024/12/03 10:23

UBS released a research report indicating that due to Trump's trade threats against BRICS countries, the US dollar index broke through 106, but its current valuation appears too high. Although the outlook for the dollar still seems bright, UBS analysts suggest investors reduce their exposure to the dollar when it strengthens in the short term.

Market attention has shifted towards key economic events this week, including Federal Reserve Chairman Powell's speech on Wednesday and non-farm employment data on Friday. Data from CME Group shows that there is a 75% chance of a 25 basis point rate cut by the Fed in December. According to Brenner, head of international fixed income at NatAlliance Securities, these data will determine whether or not the Fed cuts rates this month.

As for Eurozone news, influenced by France’s government facing a vote of no confidence, euro-to-dollar fell nearly 0.8% on Monday - its biggest single-day drop in almost one month. The three-month implied volatility rose to 8.172%, reaching its highest level in two years. The yield spread between French and German bonds rose to a new high over twelve years reflecting increased market concerns about political risks within Eurozone.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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