1. Newsroom
  2. COVID-19 and the US dollar
Menu
Analysen 18.03.2020

COVID-19 and the US dollar

COVID-19 and the US dollar

Our Global Head of Forex Strategy Peter Kinsella discusses the impact of COVID-19 on the US dollar and on the wider currency universe.



On Sunday evening, the US Federal Reserve reduced the federal funds rate by 100 bps, bringing its base rate to between 0.0% and 0.25%. The Fed also announced a reduction in the cost of its USD swap facility with five other major central banks, in order to ease USD funding concerns. The 100 bps cut was the Fed’s second emergency rate cut in as many weeks. However, the dollar appreciated significantly following the Fed’s latest policy move, reflecting ongoing funding concerns in both developed and emerging markets. Measures of USD demand are best captured by the EUR/USD cross-currency basis, which widened considerably in recent sessions. 

In this podcast we explain the dynamics behind the recent bout of dollar appreciation as well as what measures the Fed needs to take to calm markets and weaken the currency. In the short term, we continue to believe that safe-haven currencies like the Japanese yen and the Swiss franc offer a compelling risk/reward profile. Although gold prices have not performed as well as we expected, they remain a valuable part of any investment portfolio in the current environment.

Our expertise

Peter_Kinsella_150x150.jpg
Peter Kinsella
Global Head of Forex Strategy

Expertise

Swiss & Global Equities

Why Swiss equities now? This market offers equity investors the stability and agility they need to navigate this volatile period. 

Read more
Expertise

European Equities

European equities offer unrivalled opportunities in terms of breadth of sector and market exposure.

Read more

Meistgelesene News

Analysen 01.10.2020

COVID-19: Die UBP hält Sie auf dem Laufenden

Seit dem Ausbruch des Coronavirus begleiten und unterstützen wir unsere Kunden während dieser ungewöhnlichen Zeit einer weltweiten Gesundheitskrise. Die Bank informiert Sie regelmässig über die Anpassungen ihrer Massnahmen an die von den Gesundheitsbehörden vorgegebenen Vorsichtsregeln. Ausserdem kommen unsere Experten zu Wort, welche auf die Auswirkungen der Pandemie auf die Weltwirtschaft und die Finanzmärkte eingehen.

Analysen 30.06.2020

Aktualisierter Ausblick 2020

Weltwirtschaft - quo vadis?

Analysen 24.06.2020

Market turmoil brings new opportunities for pragmatic investors

March 2020 was difficult time for many investors, as COVID-19 spread across Europe and the US, leading to sharp sell-offs in fixed-income credit markets. While such market turbulence is not to be welcomed, its occurrence can create opportunities.


Auch lesenswert

Analysen 26.11.2020

Europäische Small Caps - aufstrebende Börsenstars

Kleinere Firmen bieten spannende Wachstumschancen

Analysen 24.11.2020

Perlen im SMID-Cap-Segment in Europa und der Schweiz

Unternehmen kleiner und mittlerer Kapitalisierung verzeichnen oftmals höhere Wachstumsraten und Renditen als Grosskonzerne. Es ist einfacher, ein kräftiges Wachstum von einer kleineren Basis aus zu generieren. Die sogenannten SMID Caps bieten Anlegern eine Positionierung in langfristigen Wachstumstrends.

Analysen 21.11.2020

UBP Investment Outlook 2021

Schöne neue Welt