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US dollar and the British pound to outperform next week - UBS

FXStreet (Córdoba) - The upcoming week is likely to be affected mainly by the outcome of the Federal Reserve meeting this week, according to the UBS analyst team. They continue to see US dollar and the British pound as the top performers.

Key quotes


“The US central bank left its key interest rates unchanged while revising its inflation forecast lower and acknowledging that international developments pose a downside risk”.

“Overall, we continue to see the US dollar and the British pound as the top performers, and would buy into any Fed-related dip in those two currencies”.

“The euro is likely to remain under pressure as the European Central Bank could do more at any time, while the commodity producers' and Scandinavian currencies are likely to face increased volatility”.

“After a number of important central bank meetings this month, Norges Bank will hold the last G10 central bank meeting on Thursday, when we expect another rate cut by 25 basis points. On the data side, the manufacturing PMIs in China and the US on Wednesday will likely support our case for a lower AUDUSD exchange rate. Furthermore, the Japanese inflation data on Thursday should be closely watched for any signs that the Bank of Japan might have to ease monetary policy further at its October meeting”.

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