The recovery in EUR/USD has already somewhat eroded, but where is the pair headed next? The team at Deutsche Bank explains why staying bearish is the way to go, and points to the next level: Here is their view, courtesy of eFXnews: Deutsche Bank’s bearish EUR/USD view over the last few months has relied on two factors: a material turn in ECB policy and a changing flow picture. “Across both fronts, the drivers still point down,” DB argues. 1- Monetary policy. “Recent risk-aversion has shifted attention back to the Fed and a potential change in the timing of the first rate hike. Our view is that one should distinguish between cause and effect. The cause of recent turbulence is disinflationary pressures from Europe (and China), not the US. As such, it is the ECB, not the Fed, which has the greatest potential to ease over the next few months,” DB clarifies. 2- Capital outflows. “The second rationale behind a weaker euro has been the turn in the underlying flow picture. Near-term, our high-frequency ETF monitor continues to point to large-scale liquidation of European equities by American investors…Bigger picture, we believe it is the potential for large-scale European purchases of foreign assets that can drive currency weakness,” DB adds. “In sum, the flow and relative central bank picture for EUR/USD continues to point down. We remain comfortable with our 1.25 year-end target in EUR/USD,” DB concoludes. For lots more FX trades from major banks, sign up to eFXplus By signing up to eFXplus via the link above, you are directly supporting Forex Crunch. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next Orbex extends a successful social campaign for another month Yohay Elam 8 years The recovery in EUR/USD has already somewhat eroded, but where is the pair headed next? The team at Deutsche Bank explains why staying bearish is the way to go, and points to the next level: Here is their view, courtesy of eFXnews: Deutsche Bank's bearish EUR/USD view over the last few months has relied on two factors: a material turn in ECB policy and a changing flow picture. "Across both fronts, the drivers still point down," DB argues. 1- Monetary policy. "Recent risk-aversion has shifted attention back to the Fed and a potential change in the timing of the first… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.