UBS lowers outlook for euro to $1.10 by end of 2010

A

ASusilovic

NEW YORK (MarketWatch) -- The euro will fall to buy just $1.15 by the end of 2010 as tighter fiscal policies in Europe will be warranted, keeping monetary policy loose, to address the massive debt problems of some member countries, UBS economists said Friday. The firm's new forecast is down from a previous expectation that the euro could buy $1.30 by year-end, from $1.2451 currently, already a 17-month low. The euro will decline to buy $1.10 by the end of 2011, versus a previous forecast of $1.25 by then, economists said.

http://www.marketwatch.com/story/ubs-lowers-outlook-for-euro-to-110-by-end-of-201-2010-05-14

Seems, UBS desk is hoping for some institutional hedging clients, hum ?
 
I like a strong dollar and I hope it gets stronger. It will make home purchases in Europe alot cheaper, plus it benefits tourists visiting Europe.
 
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