Commerzbank are looking for continued US dollar gains:
- USD should profit from the expectations of Fed interest rate normalization
- Current USD rates have not priced in the speed of rate hikes that we expect
On the EUR:
- The euro is set to be under pressure as a result of the persistent low inflation in the euro zone and an ECB policy that could even expand government bond purchases
Their projections (end of quarter, the two closest I have boxed in red):
And, more:
- CEE currencies - PLN and HUF are likely to remain volatile on worries about local politics
- CNY - to remain on the weaker side, following decreasing Chinese growth rates, worries about the Chinese stock market and USD strength