30 Mar 2015
EUR decline could stop in September – Danske Bank
FXStreet (Edinburgh) - According to analysts at Danske Bank, the decline in the pair could be over by the time the Fed starts its hiking cycle, around September.
Key Quotes
“We saw a slight upward correction in EUR/USD last week from technically oversold levels”.
“However, the overall trend is still down and we believe the cross will decline further as the Fed lift-off draws closer and the ECB continues its aggressive QE”.
“The outperformance of euro assets will also lead to more hedging activity from EUR into USD adding to the downward pressure on the cross”.
“However, history suggests that the majority of the currency move happens ahead of the first Fed hike and we believe EUR/USD will bottom close to the time of the first hike, which we expect in September”.
Key Quotes
“We saw a slight upward correction in EUR/USD last week from technically oversold levels”.
“However, the overall trend is still down and we believe the cross will decline further as the Fed lift-off draws closer and the ECB continues its aggressive QE”.
“The outperformance of euro assets will also lead to more hedging activity from EUR into USD adding to the downward pressure on the cross”.
“However, history suggests that the majority of the currency move happens ahead of the first Fed hike and we believe EUR/USD will bottom close to the time of the first hike, which we expect in September”.