Weak Growth Doesn't Mean Weak EUR -Deutsche

Weak growth doesn't mean weak EUR, unless it causes euro-zone tail risk to flare up again, leads to negative ECB deposit rates or weakens portfolio inflows, Deutsche Bank says. "On the first factor, we don't see recent growth weakness as sufficient to derail the Draghi put," says Deutsche Bank strategist George Saravelos. "We don't see the toxic mix of collapsing growth expectations and unstable politics repeating itself as it did this and last summer," he says. Also says negative deposit rates are unlikely while sluggish growth could -- counterintuitively -- be positive for net inflows as euro-zone investors keep money at home. EUR/USD is at 1.2920. DB year-end target 1.35.

Weak Growth Doesn't Mean Weak EUR -Deutsche

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