DB looking for a '2nd stage' USD decline

  • focus will once again turn to specific growth outcomes across countries
  • US management of virus crisi has been "suboptimal", and there are large fiscal cliffs ahead
  • could push EUR/USD to $1.20

DB "would frame dollar weakness around two stages Stage 1: the removal of the dollar risk premium, EUR/USD to 1.15. This has been the most important driver of the dollar so far"

  • "Stage 2: the end of dollar exceptionalism"

Via Bloomberg