Deutsche Bank - "We remain bullish EUR-crosses and bearish JPY. Balance of payments and monetary policy trends are highly supportive of the former but detrimental to the latter. We continue to target 1.37 in EUR/USD, 0.88 in EUR/GBP, 1.27 in EUR/CHF and 95 in USD/JPY.
(...)In the meantime, the flow story in Europe is the mirror image of Japan's. This week’s current account numbers showed another new record wide current account deficit for November, equivalent to around 2% of GDP on an annualized basis. The portfolio flow picture, remains equally positive. A resumption of inflows on the back of improving risk appetite, with outflows lagging as the Euroarea remains risk-averse. The EUR stands out by far as having the best basic balance fundamentals among the G4 currencies."