UBS analysts have raised concerns about potential risks that could hinder the anticipated rise of the EUR/USD to 120. According to the official information, these factors could significantly impact currency trading strategies.
Risks of Resurgence in US Inflation
One of the primary risks identified is the possibility of a resurgence in US inflation. Should inflation rates climb unexpectedly, the Federal Reserve may be compelled to adopt a more hawkish monetary policy, which could strengthen the dollar against the euro.
Geopolitical Crises and Safe-Haven Demand
Additionally, geopolitical crises often lead to increased demand for safe-haven assets, particularly the US dollar. Any escalation in global tensions could prompt investors to flock to the dollar, further complicating the EUR/USD outlook.
Political Instability in the Eurozone
Lastly, analysts pointed to potential political instability within the Eurozone as a significant concern.
- Uncertainties surrounding political events could undermine confidence in the euro.
- It could make it more challenging for the currency to maintain its value against the dollar.
Political instability remains a significant issue.
In light of recent tariff threats from President Trump towards the European Union, major markets in the Asia-Pacific region have experienced significant declines, highlighting concerns over global economic stability. For more details, see market reactions.








