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Deutsche Bank expects EUR/USD to stay within a 1.13 to 1.20 range
The bank keeps a 1.17 EUR/USD year-end forecast, citing resilient global growth, peak US yield support, and an energy shock it says is increasingly priced.
Deutsche Bank says EUR/USD is likely to hold within its 1.13 to 1.20 yearly range rather than break lower, pushing back against what it describes as growing consensus that the dollar will rally further, FXStreet reports.
In its view, resilient global growth and peak US yield support are helping keep the euro in the range, while an energy shock appears increasingly priced into markets.
Deutsche Bank also points to Fed pricing that it considers already “fulsome,” noting that additional US rate hikes are more likely to come through a higher term premium, which it says has historically not supported a stronger USD.
Its FX Blueprint maintains a 1.17 EUR/USD forecast for year-end and argues that, given solid global data and the Fed hiking cycle seen as well priced, investors should not be chasing EUR/USD lower at this point.
Latest closeEUR/USD 1.137 ▼0.1%