UBS - USDCHF The Currency Market's True Compass

UBS - "Traditionally, the dollar's moves against the euro and yen gain the most attention. But investors who share our view that the greenback will rally broadly this year should track the dollar's value against the Swiss franc.
(...) This year we expect the dollar to appreciate to 1.20 against the euro, 100 against the yen and 1.41 against the pound. The US economy is outperforming its peers.
(...) investors should keep a close eye on USDCHF as the currency market's true compass. As Chart shows the currency pair at present is trading at historically low levels still, in contrast to the recovery of the greenback against the euro since the financial crisis of 2008. A longer term recovery in USDCHF now would clearly support our view that the greenback will experience broad-based strength in 2013."

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Tags: Swiss Franc, UBS, USD/CHF, USDCHF

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