UBS: Trump may not be able to deliver on policies to boost the dollar

ChainCatcher news, according to Jinshi reports, UBS Global Wealth Management stated that the recent strength of the dollar may not last after Trump's victory in the U.S. presidential election. Analysts in a report said that in the medium to long term, the dollar may weaken. "The policies proposed by Trump are expected to expand the twin deficits, undermining the long-term appeal of the dollar." They indicated that Trump may not be able to deliver on policies that boost the dollar, as he might seek lower yields and a weaker currency.

Meanwhile, they noted that the market has gone too far in lowering expectations for Fed rate cuts, and the "overshooting" of U.S. Treasury yields may decline along with the dollar. UBS expects that by December 2025, the euro will rise against the dollar from the current 1.0573 to 1.12.