EUR/USD downside appears limited – Danske Bank

Jakob Christensen, Chief Analyst at Danske Bank, sees the downside in the pair as limited.

Key Quotes

“For the majors, political uncertainty will be in focus this week, in particular with regard to USD and GBP”.

“The former may be hit by concerns about the wider ramifications of the futile attempt to repeal 'Obamacare' for the prospects of tax reform and fiscal policy in the US”.

“As positioning is still close to stretched long levels, it remains vulnerable to a beginning discount of the impact of Trumpflation. Overall, we see limited downside for EUR/USD from the current level”.