UBS: EUR/USD could fall below parity in a year

geoffrey-kendrick-ubs-2010
Geoffrey Kendrick, director in FX strategy at UBS in London

"Key to the currency outlook is that the Fed will raise rates first and faster than other major central banks. If the Fed is first to hike within the majors, debt in the US will become more attractive to foreign investors, who will buy US dollars to buy treasuries," he said.

Kendrick predicts the Fed will tighten fund rates in early 2011 from the current 0–0.25% band to 1.5% by the end of 2011. He also expects the European Central Bank to follow suit in the second quarter, 2011 with an increase

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe

You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to FX Markets? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: