The Euro-to-Dollar rate could see more bouts of profit-taking that serve to draw it further away from recent highs in the weeks ahead, according to strategists at Deutsche Bank and other firms, although analyst forecasts for the single currency still favour a bullish year-end outcome. 

The Euro remains locked within a tight range against the Dollar as markets wait to see whether the single currency bloc will recover from a recent economic slowdown, but analysts at Deutsche Bank and Nordea Markets are forecasting a recovery for the EUR/USD rate before year-end. 

The Pound is already the best performing currency in the G10 universe this year but it can still rise further against the Euro and Dollar over the coming months if Prime Minister Theresa May is succesful in passing her EU Withdrawal Agreement through the House of Commons, according toDeutsche Bank. 

The British Pound's good run against the Euro might have reached its limit say strategists with Deutsche Bank.

Foreign exchange strategists with Deutsche Bank have confirmed they are turning 'bearish' on the British Pound into year-end citing the increasingly acrimonious tone to Brexit negotiations.

One of the world's largest foreign exchange dealers, Deutsche Bank, have told clients they are turning "tactically bullish" on the British Pound, expecting further strength as recent Brexit developments have reduced tail risks to the economy, and currency.

Analysts say expect the Euro to continue outperforming owing to surplus flows and a dynamic economic outlook for the Eurozone.

Strategists at Deutsche Bank have reiterate their bearish stance on the Pound in 2018 citing U.K. stocks and government bonds as now being too expensive which could hamper inflows of foreign investor capital.

Thining capital inflows will hurt the Dollar in 2018 with little offset from rising interest rates as the bulk of the upcycle has already been priced in; the Euro will win out as the recovery continues to draw inflows and the central bank closes its stimulus factory.

Early on Friday morning, Theresa May finally managed to broker an agreement with the Irish government, the DUP and the EU to take the UK onto the next phase of Brexit negotiations, Deutsche Bank assesses the impact on the Pound.

Strategists at Deutsche Bank entered the first week of October looking to bet on rebound in the Pound that could take it back to a target set at 1.17. Thus far, not all has gone to plan.

It's back to Brexit for Pound Sterling which will be seeking a new driver now that a more hawkish Bank of England has been priced into the currency's value.

The Pound's rally could continue in the near-term as short-positioning is flushed out of the market and a November interest rate rise is fully priced argue analysts at Deutsche Bank.

Deutsche Bank, while not optimistic on Sterling’s broader prospects against the Euro for the remainder of this year, have warned of a near-term bounce in GBP/EUR.

“We are more positive on the euro, with upside to the dollar and sterling” - Deutsche Bank’s house view.

The Euro is showing that it is going to go higher, regardless of what policy-makers at the European Central Bank do.

Now could be a good time to bet on a more sustained decline in Pound Sterling we are told.

It’s too early to anticipate a sustainable recovery in the Pound based on the view the UK might be heading towards a so-called soft-Brexit argue analysts at Deutsche Bank.

Foreign exchange strategists with Deutsche Bank have told clients it could be time to start betting against the Pound again with the outcome of the upcoming General Election likely to prove disappointing for Sterling.

A mere matter of hours after Pound Sterling Live were able to report that Credit Agricole were looking to profit on an expected rise in EUR/GBP we can now confirm that Deutsche Bank have come to a similar conclusion.