Fed Waits, ECB Next
The key risk to our bullish dollar view is if the Federal Reserve decides to prolong its current round of quantitative easing into 2014. Yesterday, the Federal Open Market Committee agreed to continue buying $85bn a month of Treasuries and mortgage-backed securities. But it noted that ‘fiscal policy is restraining economic growth’ and said it was ‘prepared to increase or reduce the pace of purchases…as the outlook for the labour market or inflation changes.’
Click here to read the full report: UBS