EUR/USD: Risks on to the downside – Danske Bank
|EUR/USD was under pressure yesterday following somewhat weak German regional inflation figures and the Fed’s Powell coming across slightly on the hawkish side during the Q&A in the US House after a reasonably balanced introductory statement, points out Chief Analyst, Allan von Mehren at Danske Bank.
Key Quotes
“Markets had become somewhat complacent regarding the Fed response to the US economy running on all engines, including the fiscal one, and the correction in Fed pricing and USD was warranted, in our view. Today, focus is likely to be on digesting Powell and on eurozone inflation figures; we still see risks on EUR/USD to the downside going into this weekend’s political events in the eurozone.”
“EUR/GBP fell back below 0.88 yesterday on the back of USD appreciation, wh ich hit the EUR relatively hard and M&A-related news. We look for the 0.8770-0.8925 range to hold in the short term with risks skewed to the downside ahead of Theresa May’s speech on Friday.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.