Deutsche Bank: When poverty reduces, the dollar climbs

Forex strategists of Deutsche Bank remain among the most prominent bears in terms of EUR/USD, and support expectations for a rate of $0.95 at the end of the year with a new argument.

When poverty decreases, the dollar rises, emphasize analysts and point out, that the index of poverty (The misery index), which measures inflation and unemployment declined to nearly 60-year low in November.

At the same time, expectations are, that today's monthly government report on the labor market in the US reveal, that unemployment remained at 4.9 percent, in the eight-year lows.

"The misery index suggests optimism." - Commented director of currency analysis at Deutsche Bank Alan Ruskin. - "The more positive situation on the labor market in the US, the more likely the Fed to continue tightening monetary policy which would support demand for dollars."