UBS raises dollar forecast as Fed cuts slow, cites US AI advantage

UBS has raised its forecast for the US dollar, citing the Federal Reserve's slower pace of rate cuts as a key factor influencing this adjustment. The bank also emphasized the United States' competitive advantage in artificial intelligence, which contributes to its positive outlook. This combination of monetary policy dynamics and technological leadership underpins UBS's confidence in the resilience and innovation capacity of the US economy. The revised forecast reflects an optimistic stance on the economic trajectory, suggesting that the US is well-positioned to maintain strength amid evolving global financial conditions. UBS's assessment highlights the interplay between central bank actions and technological advancements in shaping currency valuations. Overall, the outlook underscores a belief in sustained economic robustness driven by both policy and innovation.