Economists at Deutsche Bank expect the EUR/USD and GBP/USD pairs to climb towards 1.10 and 1.25 by Q2, respectively.

USD to be on a sustained downward trend from here onwards

“The USD has further weakened since the start of 2023, and we expect it to be on a sustained downward trend from here onwards.”

“There is scope for the EUR/USD to catch-up to favourable energy and monetary policy developments and reach 1.10 by Q2.”

“Cable appears cheap and the high-beta cross should benefit from the more

supportive risk backdrop in H1. We forecast GBP/USD at 1.25 by Q2.”