EUR/USD seen around 1.10 in the near term – Danske Bank

Analyst at Danske Bank Mathias Mogensen expects the pair to grind lower towards the 1.10 area in the next months.

Key Quotes

“EUR/USD rose above the 1.12 level yesterday following the weak US durable goods orders but has since retreated”.

“More broadly, while eurozone data has started to show some weakness recently, the continued stream of disappointments out of the US makes for continued support to EUR/USD from a data surprise point of view”.

“However, we expect that the balance will tip in favour of USD data-wise over the summer and help send the cross below 1.10. That said, we note that the latest IMM positioning data suggests that speculators have already moved a bit less long EUR and longer USD yet again, making a EUR/USD drop a little more difficult from a positioning angle”.