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Forex pairs in this Article » EUR/USD, GBP/USD (Córdoba) - After the US debt deal, the expectation for the Fed to continue its monetary easing for longer moved EUR/USD on Thursday to its highest level for 9 months amid broad USD weakness. The UBS analyst team commented on divergent monetary policies and how they would affect currencies.

Key Quotes

"We would argue this EUR-strength is not liked at the ECB."

"On the other hand, Bank of England chief economist Dale talked about rates could rise in 2014 and thereby spurred the GBP rally".

"We continue to see GBP in the so called 'first mover disadvantage'– the disadvantage of strong currency appreciation for whoever is expected to tighten monetary policy first".
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