UBS - "we expect last week's FOMC meeting will keep the dollar weak for one quarter before its longer-term uptrend can resume.
So we revised our short term forecasts across the board overnight. We raised our 1m and 3m EURUSD forecasts to 1.37 and 1.35 respectively (from 1.30 and 1.28 before). Our 1m and 3m GBPUSD forecasts rise to 1.63 and 1.61 respectively (from 1.55 and 1.52 previously). Similarly, we now project USDJPY to be at 101 in one month's time and 103 over the next three months (compared with prior targets of 102 and 105). We expect USDCHF to be 0.91 and 0.94 over one and three months compared to 0.96 and 0.99. We raise our 1m and 3m AUDUSD forecasts to 0.95 and 0.93 (from 0.88 and 0.88 respectively). Similarly, we expect NZDUSD to trade at 0.84 and 0.83 over the next one to three months (compared to 0.78 and 0.79 previously) and USDCAD to fall to parity over the next one to three months."