EUR/USD seen sidelined near term – Danske Bank

Mikael Milhoj, Senior Analyst at Danske Bank, expects the pair to remain aroud current levels for the time being.

Key Quotes

“Weaker-than-expected US CPI, a drop back in 5-10Y inflation expectations in the Michigan consumer survey along with a constant stream of news and comments on ECB exit strategy provided support for EUR/USD last week”.

“However, trading is likely to be quiet until Wednesday, when a number of Fed and ECB officials are due to speak. We expect EUR/USD to trade around current levels in the coming weeks ahead of the ECB meeting on 26 October”.