UBS: We Are In The Eye Of The Foreign Exchange Hurricane

“Demand for safe haven currencies surged in May when investors were panicked about the Greek elections and weak economic data coming from the US, UK, eurozone, China and India.

Then stronger-than-expected Australian and UK economic data, increased hope of Spanish bank bailouts, China’s first interest rate cut since 2008, and expectations of QE3 gave foreign exchange markets some relief.

But UBS analyst Syed Mansoor Mohi-uddin says that the current calm in the forex markets will be short-lived. ”

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