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UBS urges caution as bearish dollar bets become crowded
UBS cautions traders that crowded bets on dollar weakness may backfire, urging balanced positioning as growth data, inflation trends and Fed signals evolve.
UBS warned investors against over positioning for continued dollar weakness, noting sentiment has turned heavily bearish. Strategists said recent gains in risk assets and expectations of US rate cuts are largely priced in. Any upside surprises in growth, inflation or Federal Reserve guidance could trigger sharp dollar rebounds. They advised balanced exposure, hedging strategies and caution as currency markets reassess macro data going forward globally