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UBS write that "a more dovish Fed and a......>

DOLLAR
DOLLAR: UBS write that "a more dovish Fed and a downturn in real US yields are
bad omens for the USD in 2019, similar to the early-2016 episode. However, as we
argued in December an unwind of US 'exceptionalism' is not enough by itself to
produce sizeable USD downside. The market remains long USD as it is still
lacking positive reasons to own other G10 currencies, especially as it needs to
pay away a sizeable carry to be short dollars. We expect this to change once
global growth expectations stabilize, putting the USD in a vulnerable spot."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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