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Deutsche Bank raises euro forecast versus dollar

Published 05/12/2016, 06:43 AM
Updated 05/12/2016, 06:50 AM
© Reuters. A photo illustration shows U.S. Dollar and euro banknotes in Vienna

LONDON (Reuters) - Deutsche Bank (DE:DBKGn) of Thursday raised its forecast for the euro, citing scepticism about the European Central Bank's ability to weaken the currency further with policy and a retreat in expectations for rises in U.S. interest rates.

Along with Goldman Sachs (NYSE:GS), Deutsche strategists Alan Ruskin and George Saravelos previously led the way among bank analysts in forecasting a fall in the euro below parity with the dollar, but have steadily pushed back those forecasts.

"Our euro/dollar 2016 and 2017 year-end forecast have each been revised up by five big figures to $1.05 and $0.90 respectively," they said in a note. "The top of the EUR’s range is still seen near $1.16."

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