UBS: Expects Euro/Dollar to gradually rise

On August 12th, Jin Shi data reported that UBS Global Wealth Management carefully considered the sharp Fluctuation in the market last week and pointed out that the euro to dollar (EUR/USD) was only slightly affected. UBS pointed out that the exceptionalism of the United States (i.e., the superior performance of the U.S. economy compared to the rest of the world) is crucial for the Federal Reserve to hold higher Intrerest Rates for a longer period compared to other Central Banks around the world. However, with the disappearance of the exceptionalism of the United States, this has led to the Federal Reserve cutting interest rates and the euro rising against the dollar. UBS also warned that the U.S. election may lead to short-term setbacks in the exchange rate.