EUR/USD: What are the reasons for USD's renewed growth and EUR's weakness?

Deutsche Bank believes that several factors are working in favour of the decrease of the EUR/USD on the forex by the end of the year.

"An evolutionary scenario has encouraged higher US rates but has also raised other questions: less skepticism about the Fed's rate hikes, European political uncertainty will soon face new US probabilities, the "opportunist" weak Chinese currency policy.

It is too early to stand in front of this recent momentum, even if a break towards new cyclical ranges on key currencies like the EUR will probably have to wait another year.

All of these factors are in favour of an imminent decrease of the EUR/USD towards the annual lows at 1.0711 and are in line with our forecasted price of 1.05 by the end of the year."