UBS - "In the past week we met with seventy clients in Europe. We found that investor positions have lightened up considerably in the euro. During our trip we outlined why we continue to prefer the dollar amongst the major currencies. Given the event risk surrounding Spain, we suggested dollar bulls for now should avoid selling the single currency and instead consider medium term strategies to buy greenbacks against the yen and the Australian dollar. This and other key points for currency markets are:
- Fed's new easing to be less adverse for dollar
- EU summit key in the week ahead
- watch end of month BoJ meeting
- King signals more BoE easing, stay wary Cable
- what's the Swiss franc's endgame?
- NOKSEK remains a buy on dips
- RBA minutes key in the week ahead"
Mansoor Mohi-uddin, Managing Director and Head of Foreign Exchange Strategy at UBS Macro Research.