The market is too optimistic on the euro - Deutsche Bank ...Middle East

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The market is too optimistic on the euro - Deutsche Bank
Deutsche Bank expects the euro to fall back to 1.08 by year end.They mainly take issue with the dollar side of the trade, noting that most G10 central banks are priced to converge to a terminal rate of around 2-3%. By virtue of the Fed having the most to cut, the dollar is priced to no longer to be a high-yielder by next year. They disagree with this and think the US economy will stay strong and that he US dollar won't lose its premium as the economy outperforms."High-frequency labour indicators are fine; fiscal policy remains easy; corporate and household balance sheets are at the healthiest levels since the 1960s," DB writes.On the flipside, Europe is struggling and that will be compounded

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