The long-time euro bears at Deutsche Bank have packed it in…almost.
Bilal Hafeez, global head of FX strategy at DB wrote an apologetic note to clients, admitting their bearish call on EUR/USD was wrong.
“Since July I’ve been too dismissive of the recovery in the Euro-area and the associated surge of equity inflows and narrowing of cross-current basis, and too excited about Fed tapering. Moreover, since the September FOMC meeting I’ve underestimated how much more bad news the dollar could price in,” Hafeez wrote.
Whenever you see a long-term bull/bear throw in the towel in any trade, it’s usually near an extreme. Hafeez remains tepid on the euro saying slow growth ‘doesn’t suggest much euro strength’.
I appreciate the humility from DB but I subscribe to Garfield’s philosophy on making bad calls.
