r, but a widening current account deficit and stronger USD will constrain gains versus the euro and dollar. We are moderately bearish EUR/GBP and GBP/USD, forecasting 80p and 1.54 by end-year respectively. • As an outright trade we prefer buying GBP versus CAD, on which we are more bearish. It rema

agflation remains a prominent issue, further, it is worth nothing that almost any policy response could conceivably push volumes higher given that GBP/USD spot volumes experienced one of the sharpest falls YtD within the Deutsche Bank AG/London The bigger picture: Trading volumes and volatility 100

this fall as =iscal drag fades, or unless we have underestimated the ability of Europe t= deliver above-trend growth for a few quarters, EUR/USD and GBP/USD should=revert lower by a few cents but remain within this year's range. Commodi=ies 4 EFTA_R1_01742403 EFTA02572700 * We have been OW energy

vily concentrated in commodity and EFTA01475991 EM currencies. Our end-2016 forecasts are largely unchanged: EUR/USD at 0.90, USD/JPY at 128, and GBP/USD at 1.27. Commodities: Supply adjustment is well underway for oil, not so for the metals We expect OPEC will have engineered one of the sharpest hi