EUR/USD seen at 1.0700/1.0500 on a 6/12M horizon – Danske Bank

Market news

26 January 2024

EUR/USD seen at 1.0700/1.0500 on a 6/12M horizon – Danske Bank

EUR/USD moved lower to around the 1.0850 mark after the relatively dovish ECB meeting. Economists at Danskr Bank analyze the pair's outlook.

Selling EUR/USD on rallies in the near term

While we recognise that our Fed (first cut in March) and ECB (first cut in June) forecasts, all else equal, are positive for EUR/USD in H1, we believe that the broader pricing in the G10 could be more decisive for the cross, as we perceive current market expectations for rate cuts to be excessive.

We still maintain our bias towards selling EUR/USD on rallies in the near term, and we forecast EUR/USD at 1.0700/1.0500 on a 6/12M horizon.

Brazil Mid-month Inflation below expectations (0.47%) in January: Actual (0.31%)

EUR/JPY rebounds from weekly lows after decelerated Japan CPI, edges higher to near 160.60

Market Focus

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer

Open Demo Account & Personal Page

Personal area

support@teletradepartners.com

Risk Warning: Trading in the financial markets (including trading on margin) provides a wide range of opportunities and enables investors ready to take risks to make high profits, but it carries a potentially high level of risk of loss. Therefore, prior to trading you should take into careful consideration whether such operations are suitable for you in terms of your level of knowledge and financial situation.