Dollar - neutral the base case

DB have been spot on when it comes to the latest dollar moves. Their year end 2022 target is right around these levels. They don't see it regaining the "mighty" status as macro has changed a lot, but they don't see it falling further. The risk premium is looking a lot more normal here (chart 1). Note that positioning has adjusted quickly over the past weeks and we are in neutral territory (chart 2).