UBS: The US dollar may consolidate in the near term, but it could potentially decline again afterwards.

Analysts at UBS Global Wealth Management said in a report that the US dollar appears oversold and will likely face a period of consolidation in the near term. Federal Reserve Chair Powell is unlikely to be forced to resign, and while other central banks are easing, the Fed sounds cautious on the issue of interest rate cuts. However, analysts suggest that the trend of a weaker dollar may resume in the medium term. The slowdown in the US economy could be greater than in other regions, and the rising fiscal deficit will become a greater focus, with the Fed possibly resuming interest rate cuts later this year. UBS tends to take advantage of the recent strength of the US dollar to reduce US dollar allocations and instead choose currencies such as the Japanese yen, euro, pound, and Australian dollar.