UBS Global Wealth Management mull the wild swings in markets last week, noting only a mild impact on EUR/USD.
- expect the rate to rise gradually
- says US exceptionalism (the US economy outperforms the rest of the world) was key to the Federal Open Market Committee (FOMC) holding higher (than other global central banks) for longer
- exceptionalism will now fade
- leading to Fed rate cuts and a rising EUR/USD
- warn that the US election might lead to short-term setbacks, but advised to build lone EUR/USD into any of these
