Deutsche Bank with a EUR/USD forecast:We maintain our view that the EUR/USD range will look similar to last year's with a break below 1.05 more likely than a sustained move above 1.10Deutsche Bank cite, on the USD:high yield for the USdollar benefits from an environment of subdued FX volatilityrisks towards far greater divergence favouring the Fedthe dollar as a hedge to geopolitical deterioration is strongboth sides of US politics emphasising tariffs rather than a weak dollar policy on approach to the electionAnd on the euro side:European growth improvement already anticipated by market consensusECB earlier easing vs. to the Fedsubdued global growth recoveryGerman structural challenges, ongoing fiscal policy tighteningSubdued volatility is right.
Deutsche Bank with a EUR/USD forecast:
We maintain our view that the EUR/USD range will look similar to last year's with a break below 1.05 more likely than a sustained move above 1.10
Deutsche Bank cite, on the USD:
high yield for the US
dollar benefits from an environment of subdued FX volatility
risks towards far greater divergence favouring the Fed
the dollar as a hedge to geopolitical deterioration is strong
both sides of US politics emphasising tariffs rather than a weak dollar policy on approach to the election
And on the euro side:
European growth improvement already anticipated by market consensus
ECB earlier easing vs. to the Fed
subdued global growth recovery
German structural challenges, ongoing fiscal policy tightening
Subdued volatility is right.
