UBS Morning Adviser

The familiar drivers of euro strength seem to have met their match in recent days courtesy of the Fed’s new Chair. For sure, the Eurozone trade balance remains deep in surplus territory, the ECB’s balance sheet is still in contraction mode, and portfolio

flows into Eurozone assets may still have a little further to run. Yet, at Wednesday’s FOMC announcement, when the prospect of an eventual Fed tightening campaign was dangled before investors, all other influences on EURUSD took a back seat.