Forex Flash: EUR/USD to move out of the 1.20-1.25 range only short term - UBS

FXstreet.com (Córdoba) - Markets rallied on Tuesday on the back of Monday's reports of the ECB considering yield targets for sovereign bonds, as well as comments by Fed Lockhart who said that the US economic recovery is 'still disappointing', according to the UBS analyst team.

"By pricing in further monetary stimulus, EURUSD gained more than one big figure and rose close to 1.25", they say. "However, with still present risks within the Eurozone, EURUSD lacks long-term upward potential. We thus expect EURUSD to move out of the 1.20-1.25 range only short term".