Euro Has Scope to Top $1.10 by End Next Year, Deutsche Bank Says
- Strategists doubt fresh dollar highs if Fed maxes out near 5%
- They urge ‘extreme caution’ on yen in face of policy risks
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The euro has scope to bounce back above $1.10 by the end of next year, taking it to levels last seen in the early months of the Russia-Ukraine war, before energy and economic concerns helped drag the common currency below parity with the greenback for the first time in decades.
Deutsche Bank AG’s Alan Ruskin and George Saravelos reckon that the euro could rise to that level, even without a major change in the geopolitical environment, if -- as the bank suspects -- the US monetary authority errs on the side of easing monetary policy in the second half of next year and the European Central Bank is still increasing borrowing costs. It’s currently trading around $1.0380, more than 8% above its nadir from late September.