The euro may fall if the region’s financial institutions get more cash than analysts estimate in the European Central Bank’s tender for three-year loans, said Deutsche Bank AG’s head of foreign-exchange strategy.
The dollar fell against most of its major counterparts before Federal Reserve Bank of New York President William Dudley speaks today amid speculation the U.S. recovery isn’t strong enough to deter further monetary easing.
The dollar fell, snapping three days of gains versus the euro, on speculation that Federal Reserve officials will signal further measures are needed as part of the central bank’s quantitative-easing plan to support growth.
For Raimund Muecke, the euro’s 17 percent surge against the dollar over the past five months signals a return to the days when a thriving Germany and an appreciating deutsche mark meant a robust Europe.
The dollar’s drop against the euro and yen this week in the face of falling stock markets signals more weakness as investors reduce bets on rate increases by the Federal Reserve, according to Deutsche Bank AG.