EUR/USD seen at 1.07 by year-end – Deutsche Bank
|Economists at Deutsche Bank remain neutral on the EUR/USD.
The Fed remains the most important catalyst for a move lower in the Dollar
We remain neutral on the EUR/USD. The main reason EUR/USD has failed to break higher this year is the relative outperformance of US growth to Europe. We see this growth divergence as having peaked with forward-looking indicators improving in Europe but deteriorating in the US.
The Fed remains the most important catalyst for a move lower in the Dollar. While the US inflation picture is looking increasingly benign, outperformance in growth supports the USD.
We mark down our year-end forecast from 1.15 to 1.07 to reflect our neutral view.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.