UBS: The recent strength of the US dollar may be difficult to sustain

According to Jinse Finance, UBS Global Wealth Management believes that the recent strength of the US dollar may not continue after Trump’s victory in the US presidential election. Analysts said in a report that in the medium to long term, the US dollar may weaken. “Trump’s proposed policies are expected to expand the twin deficits and weaken the long-term attractiveness of the US dollar.” They said that Trump may not be able to fulfill his policies to boost the US dollar, and he may seek lower yields and weaker currencies. At the same time, they said that the market has gone too far in dropping the expected rate cut by the Federal Reserve, and the “overtone” of US Treasury yields may follow the decline of the US dollar. UBS expects the euro to rise from the current 1.0573 to 1.12 against the US dollar by December 2025.