Via an overnight note with some currency outlooks, this snippet on the euro ahead.
DB begin by noting that two assumptions they had in January have not played out
- an easing of trade tensions
- a resolution of exit
The implication is:
- higher FX volatility
- weaker risk appetite
On the euro, say that Europe, especially Germany, are particularly exposed to global risks
- so they are not positive on euro
- see EUR/USD "potentially breaking 1.10 through the summer"
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We are not too far from 1.10 as you can see from the daily:
