FXStreet (Edinburgh) – Analysts at Danske Bank believe the downside in spot could be limited in the near time, although they expect the downside to resume in the longer run.
Key Quotes
“Global FX markets are very volatile at present”.
“Thus, while EUR/USD ended the day only a little higher yesterday, the intra-day price action was very heavy”.
“As such, EUR/USD is currently caught between weak global risk appetite and a brighter outlook for the US economy”.
“We have an above-consensus call for the US retail sales data, which should provide some support to the USD today”.
“However, given the current market sentiment we should probably not expect a prolonged period of EUR/USD selling on a strong retail sales figure”.
“On a three- to six-month horizon we still expect the cross to head south as improved economic figures out of US should eventually make a Fed hike more evident”.
(Market News Provided by FXstreet)