Economists at Danske Bank look for the EUR/USD pair to revert lower over the coming weeks.

Scope for a top-and-turn in EUR/USD over the coming weeks

“Uncertainty about the size of Fed's next rate move makes for quite a wide outcome space for short-term USD rates and EUR/USD over the next 1-2 weeks.”

“We still favour Fed to hike 50 bps in February with the main arguments being a still tight labour market, a likely rebound in Core CPI looks to around 0.3-0.5% MoM and hawkish Fed comments recently. Hence, we see potential for EUR/USD to revert lower over the coming weeks.”