EUR/USD: Range view holds as Dollar doubts grow – Deutsche Bank
Deutsche Bank argues EUR/USD is likely to hold within its 1.13–1.20 yearly range rather than break lower, pushing back against consensus Dollar bullishness. The bank cites resilient global growth, peak USD yield support and an energy shock that looks increasingly priced.
Deutsche Bank maintains that the EUR/USD exchange rate is likely to remain within its yearly range of 1.13-1.20, rather than falling further. The bank's reasoning against the prevailing Dollar bullish sentiment includes strong global growth, peak USD yields, and an energy shock that appears increasingly priced in. The FX Blueprint from Deutsche Bank predicts a 1.17 EUR/USD forecast for the end of the year, highlighting robust global data and limited potential for further Dollar appreciation driven by the Federal Reserve.
At the moment, EUR/USD is at the lower end of its range. The bank advises against attempting to chase the rate lower, as global growth is solid, energy markets have priced in substantial risk premiums, and the Fed's rate-hiking cycle is already well-priced. Consequently, it appears to be an unsuitable time to be betting on EUR/USD declining.
The FXStreet Insights Team, comprising expert journalists, has created this analysis based on market observations from reputable sources.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
