Deutsche Bank: 7 reasons to re-short the euro

US stock market center: Exclusive offer full industry sector stocks, premarket after-hours, ETF, warrants night network real-time quotes, nightlife network Finance YORK, Dec. 19 news, last month, Deutsche Bank (Deutsche Bank) to lock the euro against the dollar empty single profit is expected to enter the market consolidation。But in the latest report, Deutsche Bank strategists George Saravelos proposed to re-open space, 1 goal.1 five。The euro against the dollar was slightly lower than 1.twenty three。  Saravelos said in a report: "Progress in the past week is so great that we are determined to see the trend bearish on the euro next year greatly strengthened。"The following is a '7 reasons to re-short the euro' Saravelos proposed: 1. Yellen performance "hawks"。We believe that Wednesday's Fed meeting was hawkish。Indeed, the Fed mentioned downside risks to inflation, but most of all positive comments on the US economy, and dovish camp committee obviously still considered to be in June 2015 to raise interest rates point。To determine the current market price of the Federal Reserve to raise interest rates for the first time point of 10 months, it is likely to face re-pricing。2. The European Central Bank [microblogging] is likely to implement QE in January next year。Considering the drop in oil prices, inflation is expected to drop, the volume of applications oriented long-term refinancing operations (TLTRO) disappointing, weak economic data, as well as interviews with other European Central Bank executive committee Coeure two very dovish factors, we believe that the European Central Bank announced in January next year the possibility of quantitative easing (QE) is large。3. Swiss central bank needs to sell the euro。Swiss central bank kept interest rates unchanged last week, the euro fell against the Swiss franc lower limit。We believe that Zhou Ruishi central bank alone has increased by 3-5 billion euro reserves。This requires the SNB to sell the euro in the next few weeks to maintain the stability of the allocation ratio of reserves, thereby increasing the downward pressure on the euro。4. European stock markets again began to capital outflows。Last month, foreigners from European stock markets have stabilized divestment of the phenomenon, but tensions in Russia makes capital outflow again。Even after the European Central Bank launched QE buyers will return to the field, we expect that these funds will flow into the stock market to hedge foreign exchange, which had no effect on the euro。5. The actual decline in interest margin recovery in Europe and America。We believe the actual spread (ie the difference between interest rates after inflation adjustment) is a good guideline exchange rate changes, interest rate differential is now no longer an obstacle to the euro to new lows。6. Greece risks rise again。Greek first round of parliamentary elections failed to elect a new president。Our benchmark is still the judge will enter the general election in Greece, causing new uncertainties to the European。Moreover, we believe that these new circumstances might make the ECB to accelerate the introduction of QE, rather than vice versa。7. Euro short positions declined。All of our survey last month showed the euro against the US dollar short positions is very high, then our dbSelect indicators go flat short positions, leverage and short positions IMM account has fallen from extreme levels。The trend of the past two weeks the euro cause some short covering, we expect to enter next year will be a significant decline in short positions。  (Shofu compilation)