Currency strategists at UBS think that the major bearish trend for US dollar will soon be over. In their view, there are several reasons for US currency to strengthen.

Firstly, the specialists expect the recovery of American economy to continue in the second half of the year.

Then the end of the Federal Reserve second round of quantitative easing in June will provide a lot of fresh air for the greenback that has been under the pressure of the Fed’s $600 billion bond purchasing program during the last 12 months.

Finally, dollar will be supported as euro will be under weight of the debt crisis in the region and the uncertainty created by the inability of the European authorities to come up with some decisive steps.

UBS analysts think that the pair EUR/USD will fall from the current 1.40/1.50 range to the 1.30/1.40 range in the second half of the year.

Chart. Daily EUR/USD