EUR/USD Upside Capped in the Medium-Term – Danske Bank
Senior Analyst at Danske Bank Pernille Henneberg sees gains in the pair could be limited in the medium-term horizon.
“EUR/USD continues slowly lower. EUR/USD is back around 1.14 after touching above 1.16 earlier this week. In our view, the Fed is too dovish priced, while the ECB is fairly priced”.
“This should cap EUR strength in the coming months as positioning is now much cleaner compared to the very stretched short EUR/USD positioning in the beginning of the year”.