UBS: Trump may not be able to fulfill the policy of boosting the dollar.
According to Jinshi News, UBS Global Wealth Management stated that the recent strength of the US dollar may not continue after Trump won the US presidential election. Analysts said in a report that in the medium and long term, the dollar might weaken. "The policies proposed by Trump are expected to expand twin deficits and undermine the long-term appeal of the dollar," they said, adding that Trump may not be able to fulfill his policy of boosting the dollar and he might seek lower interest rates and weaker currency.
Meanwhile, they noted that markets have gone too far in lowering expectations for Federal Reserve rate cuts, and an "overshoot" of U.S. Treasury yields could follow a slide in the dollar. UBS predicts that by December 2025, EUR/USD will rise from its current level of 1.0573 to 1.12.
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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