Analysts at Danske Bank see the pair resuming its downside, targeting 1.10 during the first half of 2015.
Key Quotes
“More broadly, the rise in the oil price and converging economic cycles is the main themes in FX markets”.
“EUR/USD has rebounded sharply and the DXY index is weakening”.
“Notably, the US Economic Surprise Index fell sharply during January, while the opposite is occurring for the euro zone”.
“We continue to expect a new drift lower in EUR/USD through H1 but a relatively shallow one reaching 1.10 by end-H1 before a modest recovery in H2”.
Key Quotes
“More broadly, the rise in the oil price and converging economic cycles is the main themes in FX markets”.
“EUR/USD has rebounded sharply and the DXY index is weakening”.
“Notably, the US Economic Surprise Index fell sharply during January, while the opposite is occurring for the euro zone”.
“We continue to expect a new drift lower in EUR/USD through H1 but a relatively shallow one reaching 1.10 by end-H1 before a modest recovery in H2”.
