Following the winter, growth in the Eurozone and in China, in particular, should pick up again. This could weaken the USD and lift the EUR, according to economists at Deutsche Bank.

Difference between returns in the US and the Eurozone should diminish 

“The difference between returns in the US and the Eurozone should diminish as the year 2023 progresses. The US interest rate cycle will probably reach its peak in spring 2023 while the European Central Bank raises interest rates further.” 

“Growth in the Eurozone and in China in particular may pick up again following a weaker winter. For this reason, we expect the EUR/USD rate to be around 1.05 at year-end 2023.”