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EUR/USD: There's Something New Going On Here - Deutsche Bank
What’s behind the moderately stronger USD and slightly weaker EUR? An evolving narrative had its roots in higher Treasury yields but has moved on to a collection of other issues including: less skepticism on Fed rate hikes; European political uncertainties that will soon clash with new US fiscal probabilities; path dependent trades triggered by a break of old ranges; China’s ‘opportunistic’ weaker currency policy and reserve rebalancing considerations; and the EUR’s evolving status as the medium-term G3 funding currency of choice in the global hunt for yield. It is too early to stand in the way of this ... (full story)