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24 Jun 2013
Flash: EUR/USD, case for 1.20 year-end strengthened - UBS
FXstreet.com (Barcelona) - Broad-based dollar strength against the rest of the major currencies should continue to be the dominant theme going forward, says Mansoor Mohi-uddin, Head of Foreign Exchange Strategy at UBS Macro Research.
Mohi-uddin thinks "US fund managers are likely to repatriate capital back home, Foreign central banks will have to 'rebalance' falling reserves - by selling euros, pounds and commodity currencies to rebuild their holdings of greenbacks that they use to defend domestic currencies - while sovereign wealth funds are likely to remain overweight dollars."
UBS Strategist Mohi-uddin and his team maintain a forecasts for the dollar to rise to 1.20 by the end of 2013.
Mohi-uddin thinks "US fund managers are likely to repatriate capital back home, Foreign central banks will have to 'rebalance' falling reserves - by selling euros, pounds and commodity currencies to rebuild their holdings of greenbacks that they use to defend domestic currencies - while sovereign wealth funds are likely to remain overweight dollars."
UBS Strategist Mohi-uddin and his team maintain a forecasts for the dollar to rise to 1.20 by the end of 2013.