Salient to Investors:

Mansoor Mohi-uddin at UBS said the euro and pound will weaken to $1.20 and the pound will fall to $1.41, more than 3-year lows against the dollar, by year-end 2013 as the commitment by the ECB and the BoE to keep interest rates low for extended periods. Mohi-uddin said policy divergence across the central banks will strengthen the dollar because the ECB and BoE’s low interest-rate policies will induce risk-seeking investors to shun the euro and the pound in favor of higher-yielding foreign assets.

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