UBS recommends taking advantage of the strengthening of the US dollar to reduce exposure, and the market is concerned about the probability of the Fed cutting interest rates

According to TechFlow, UBS Research pointed out that due to Trump's trade threats against BRICS countries, the US dollar index broke through 106, but the valuation was too high. Analysts suggested taking advantage of the strengthening of the US dollar to reduce US dollar exposure.

The market is paying attention to key economic events this week, including the speech of Federal Reserve Chairman Powell and non-farm payrolls data. The market expects the probability of the Federal Reserve cutting interest rates by 25 basis points in December to be 75%.

As for the euro, the euro fell nearly 0.8% against the dollar as the French government faced a no-confidence vote. The euro's three-month implied volatility rose to 8.172%, and the yield spread between French and German bonds reached a 12-year high, reflecting concerns about political risks.