Deutsche Bank on the EUR/USD - see it potentially even lower
Via an overnight note with some currency outlooks, this snippet on the euro ahead.
DB begin by noting that two assumptions they had in January have not played out
- an easing of trade tensions
- a resolution of exit
The implication is:
- higher FX volatility
- weaker risk appetite
On the euro, say that Europe, especially Germany, are particularly exposed to global risks
- so they are not positive on euro
- see EUR/USD "potentially breaking 1.10 through the summer"
We are not too far from 1.10 as you can see from the daily: