UBS Shifts Euro-US Dollar Estimates Higher

BY MT Newswires | ECONOMIC | 07/16/25 11:44 AM EDT

11:44 AM EDT, 07/16/2025 (MT Newswires) -- The US dollar (USD) is likely to remain under pressure into 2026 due to trade tensions, slowing economic growth, rising debt, and Federal Reserve rate cuts, said UBS.

The euro (EUR) remains the preferred alternative to the US dollar, supported by the more front-loaded German fiscal boost and the likely end of the European Central Bank easing cycle, stated UBS.

The bank brings forward and raises its EURUSD forecasts for September and December 2025, as well as for March and June 2026 to 1.19, 1.21,

1.22, 1.23, respectively, from 1.16, 1.16, 1.18, and 1.20, respectively

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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