Euro Gains Amid Dollar Weakness as Deutsche Bank Challenges Safe-Haven Narrative
The euro continues its upward trajectory, posting a 0.91% year-to-date gain against a weakening dollar that now hovers NEAR four-year lows. Currency markets show the dollar index down 1.3% in 2026 following last year's 9% decline, with the euro trading between 1.1849 and 1.1878 during Monday's session.
Deutsche Bank's FX research team led by George Saravelos dismantles the conventional wisdom linking dollar strength to equity market turmoil. Their analysis reveals near-zero historical correlation between the USD and stock performance, with recent decoupling from the S&P 500 particularly pronounced. "AI concentration risks" in software stocks - exemplified by Anthropic's disruptive workflow tools - have hammered the S&P 500 Software and Services Index 20% lower this year without triggering typical dollar rallies.
