Flash: EUR/USD to fall to 1.2800 in 3 months - UBS

FXstreet.com (Córdoba) - According to the UBS analyst team, a continued weakening of US housing data and weaker than expected wholesale sales Wednesday have, if anything, increased the uncertainty about whether the Fed is going to start tapering off its monetary easing next week.

Key Quotes

“Financing conditions have tightened, illustrated by the 30-year mortgage rate, which has shot up to levels similar to early 2011”.

“Still, given the robust US economy, we expect that Fed tapering will remain an issue either way. We expect EURUSD to fall to 1.28 in 3 months”.