Writing to clients on Wednesday, March 15, strategist George Saravelos says his team are turning tactically neutral on the pair and see risks of a squeeze to 1.

EUR/USD Upgraded to Neutral at Deutsche Bank

The Euro to Dollar exchange rate has however since shown a resilience that has ensured the pair has failed to go below 1. The call comes on the day the US Federal Reserve opts to raise interest rates but shows little appetite for enacting three further rate rises in The market is already expecting five hikes over the next two years and the terminal Fed funds rate is approaching 2.

On the Trump front, Deutsche Bank are disappointed that more aggressive measures on taxation and spending have not been delivered. On the European side of the equation, Deutsche Bank observe the French polling numbers have been remarkably stable.

While the market is already pricing a very low probability of a LePen win, there is likely pent-up demand for European growth sensitive assets after the election. Mario Draghi, in the March policy meeting, signalled a willingness to incrementally turn more hawkish. But an ECB willingness to potentially discuss a one-off hike in the depo rate combined with upside risks to Eurozone core inflation in coming months makes the near-term case for ignoring ECB exit weaker," says Saravelos.

Deutsche Bank – Exchange Rates

Deutsche Bank tell clients they are tactically turning neutral on EURUSD and revising their Q2 and Q3 forecasts up to 1. The pair had been in an uptrend but recent weaknesses have made the outlook more bearish.

There is still no change to our forecast of the pair reaching 1. The pair is still forecast to rise as per our June 11 report despite a pull-back following the Fed's decision to hike rates.

The news and information contained on this site is by no means investment advice. We intend to merely bring together and collate the latest views and news pertaining to the currency markets - subsequent decision making is done so independently of this website. All quoted exchange rates are indicative.

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Thursday, 16 March At the time of writing the exchange rate is quoted at 1. Both measures are a little below the peaks reached in Focus on the German election could help attract further inflows after. And then there is the European Central Bank. Forecast Changes Deutsche Bank tell clients they are tactically turning neutral on EURUSD and revising their Q2 and Q3 forecasts up to 1. They are not however changing our year-end bearish forecast of 0. Latest News on Pound Sterling Live Pound to Australian Dollar Continues Falling - Next Stop 1.

The Euro to US Dollar Exchange Rate's Recent Rally is Looking Shakey June 21, Pound v Canadian Dollar Rate Enters New Downtrend June 21, Hawkish Haldane Sends British Pound Higher v Dollar, Euro and G10 June 21, Euro to Dollar The Euro to US Dollar Exchange Rate's Recent Rally is Looking Shakey 21 June, The pair had been in an uptrend but recent weaknesses have made the outlook more bearish.

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