The document outlines a framework for understanding the USD in relation to different states of risk appetite and potential policy responses. It describes four states of risk: State 1 (risk neutral/positive), State 2 (market volatility delays Fed), State 3 (consistently negative risk), and State 4 (exceedingly negative risk). Each state has implications for EUR/USD and other currency pairs.
documents/vol00010-efta01458611-pdf.pdf
{"title":"FX Forecasts and Valuations: Don't throw in the towel","document_date":"2015-09-25","document_type":"tabular","document_subtype":"financial analysis","key_organizations":["Deutsche Bank","ECB","BoJ","Fed"],"reference_numbers":["DB-SDNY-0118600","SDNY_GM_00264784","EFTA01458611"]}