EUR/USD now targets YTD tops near 1.2540 – Danske Bank

Another test of recent tops in the 1.2540 region appears likely, suggested Chief Analyst at Danske Bank Arne Rasmussen.

Key Quotes

“EUR/USD on the rise again yesterday, breaking above 1.25 once more, as the downward pressure post-FOMC faded after the somewhat ISM manufacturing release”.

“With the Fed March hike practically looking a done deal by now, the potential for today’s non -farm report to move the USD should be limited. And, in fact, if recent price action is anything to go by, a decent report (as we indeed look for) may not necessarily prove a USD positive in an environment where the recovery looks increasingly synchronised as it may merely raise hopes that the rest of the world – where scope remains to price policy ‘normalisation’ – will be dragged along”.

“Next level to watch on the upside in EUR/USD is 1.2537 (25 Jan high)”.