EUR/USD: The euro could suffer from the political risks that are approaching (UBS)

UBS brings up the downside risks that exist for the EUR/USD on the forex.

"Political risks in Europe are pushing the EUR/USD down. We are approaching March, when many will have to add protections against a downward slide. In view of the strong and asymmetrical risks, it is prudent to protect oneself.

Irrespective of the results of the elections, the EU will necessarily change. There are too many disgruntled European citizens and their views cannot be dismissed.

With less unexpected events on the horizon in the US, the EUR/USD is expected to decline by the end of the month and in early March. If this does not happen quickly, we should end up recording an annual low below 1.0390."