Brocker.Org: EUR/USD seen higher within a year’s time – Dankse Bank

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Analyst at Danske Bank Thomas Rosenlund believes the pair could inch higher within a year’s view.

Key Quotes

“According to the latest IMM positioning data, non -commercial investors reduced EUR shorts further last week, and speculative accounts are now net long EUR for the first time since 2014 suggesting that risks – from a positioning point of view – are more balanced”.

“While the level shift in EUR/USD, which took the cross into higher ranges after the first round of the French election, is likely to prevail, we think that the Fed’s upcoming announcement on its QT scheme could lend some support to the USD in the near term”.

“However, we still think that the significant move to watch out for on a 12M horizon is a higher EUR/USD, which is likely to be fuelled by an ECB shift away from further easing while fundamentals such as valuation and current-account balances remain supportive for the cross as well”.

 

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