EUR/USD: Deutsche Bank says 2-year US/ALL spread will soon be very important, EUR/USD headed for parity in long term

"There is strong evidence that the spread of the 2-year rate will count more than the spread of the 10-year rate as the main driver of the EUR/USD pair.

A 1% change in the 2-year yield spread suggests a change of 10 "figures" on the EUR/USD.

Rate futures point to a 2-year rate spread adjustment in favour of the dollar to the tune of 1.2% over the next 3 years, enough to bring the EUR/USD down to parity", Deutsche Bank states.