The USD fell across the board after US inflation data for July came in lower than expected. Nonetheless, economists at UBS still expect the greenback to enjoy further gains against both the euro and the pound.

Worries about energy supply shortages and political uncertainty in the EU and the UK

“We still think the potential for USD strength versus the euro and British pound remains intact.” 

“Our forecast for a weaker euro and sterling is based on worries about energy supply shortages and political uncertainty in the eurozone and the UK, which will remain an issue in the coming months.”