Deutsche Bank is out with its periodical FX Blueprint today in which DB maintains its bearish EUR views advising clients to stay short EUR/USD targeting 1.25 by year-end. DB outlines 6 reasons behind this view: 1. Real Yields Are Finally Turning. Nominal rate differentials have been moving against the euro for a long time, but it is real yields that matter more. These finally turned this summer, coinciding with the last phase of ECB easing (chart 1). 2. Equity inflow story has peaked. The major flow story supporting the euro has been foreign equity purchases. Cheap valuations, a re-building of foreign underweights ... (full story)