Flash: USD expected to weaken over the coming months - Commerzbank

FXstreet.com (Córdoba) - The high volume of Fed bond purchases as part of the QE program had put pressure on the dollar for a considerable time, according to Ulrich Leuchtmann, analyst at Commerzbank.

"Recent speculation about an imminent reduction of the QE3 volume have been making the rounds, supporting the US currency on the FX markets", says the analyst. "We consider this speculation to be inappropriate and therefore expect a weaker dollar over the coming months".

"As for the USD outlook, this means in our view that the motives for the recent USD recovery are based on false expectations and we therefore expect to see EUR-USD, AUD-USD etc recovering soon", he adds.