EUR/USD rangebound near term – Danske Bank

By FXStreet FXStreet (Edinburgh) – Senior Analyst at Danske Bank Christin Tuxen sees the 1.05/1.10 range prevailing in the short-term horizon, although with risks tilted to the downside.

Key Quotes

“In our view, EUR/USD is currently caught between potential downside from relative rates on the one hand and support from fundamentals, stretched positioning and cyclical conditions, on the other”.

“As a result, we see the cross range-bound in the 1.05-1.10 interval near term with a possible move to the lower end as the Fed maintains a hike-determined stance despite recent China and oil worries”.

“Following a near-term re-pricing of US money market curve, we believe that the clearing skies for the euro zone cyclically and thus the market buying into ECB end of easing will allow EUR/USD to drift higher as warranted by fundamentals and as speculators unwind EUR/USD shorts”.

“We have kept our forecast profile unchanged and thus continue to see EUR/USD headed towards 1.16 in 12M”.
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Source:: FX Street