Deutsche Bank Sees Strong Dollar Even as Fed Cuts Interest Rates
- US policymakers face less urgency to cut rates than peers: DB
- Euro seen weakening to $1.05 in coming months amid pivot
Deutsche Bank strategists expect the euro to weaken to $1.05 in the first few months of this year, implying a roughly 4% drop from the current level.
Photographer: Krisztian Bocsi/BloombergThis article is for subscribers only.
The dollar is set to strengthen as the resilience of the US economy allows Federal Reserve officials to cut interest rates slower than other major central banks.
That’s the view, at least, of George Saravelos, Deutsche Bank AG’s global head of foreign-exchange research, who expects the greenback to end 2024 as one of the world’s top-three high yielders. Growth and inflation indicators in Group-of-10 nations show the euro area and Sweden are most likely to require more-rapid dovish policy pivots, Saravelos wrote.