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FXstreet.com (Barcelona) - While the UBS FX Strategy Team recognizes the EU has at last started to deal with its underlying problems, according to Mansoor Mohi-uddin, Head of UBS Macro Research, it will not be enough to impend the EUR/USD from resuming its bearish trend as the "announcements do not address the EZ's lack of competitiveness and unsustainable long term debt burdens" he says.

As noted by Mr. Mohi-uddin: "We think the sharp gains in the euro to 1.27 against the dollar will not be sustained and the single currency is still likely to fall to 1.15 by year end. Moreover, with the ECB having exorted national government to take more reforms, the ball is now in the central bank's court. As a result the market is likely to focus on whether the ECB will cut interest rates at next week's monthly meeting."

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