In the view of economists at Deutsche Bank, USD strength could start to peter out in the coming months. They forecast EUR/USD at 1.10 by end-June 2023.

Scope for eurozone policy tightening could eventually bolster EUR

“While the USD should remain in demand in the short-term, it could depreciate in the medium term given that the course of monetary policy in the US is already largely priced in. 

“There is still potential for a more restrictive eurozone monetary policy stance than currently priced in, especially in 2023.”

“We forecast EUR/USD at 1.10 for the end of June 2023.”