UniCredit cuts its estimate for EUR/USD to 1.20 for the end of 2018, compared with previous guidance of 1.32. In 2019, EUR/USD is likely to reach 1.25 and not 1.36, as previously expected. "We continue to see the recent strengthening of the dollar as temporary as a fiscal expansion this late in the cycle is usually associated with forex weakness," UniCredit says. "However, the uncertainty surrounding the impact of higher U.S. tariffs on highly export-oriented regions, as well as increased political uncertainty in the eurozone, will likely lead to investment flows being less dollar-bearish - and less euro-positive - than we previously thought."