EUR/USD: How Low Can You Go?‏

Published 10/02/2014, 05:57 AM
Updated 05/14/2017, 06:45 AM

The EUR/USD may bounce around the ECB meeting but this should prove short-lived ahead of a likely strong September non-farm payroll report.

Growth and monetary divergence will drive EUR/USD lower near term as the USD's role as an asset currency increases and the EUR is the funding currency of choice.

We lower our EUR/USD forecasts to 1.25 on 1M, 1.22 on 3M, 1.20 on 6M and 1.23 on 12M. EUR weakness, monetary easing and US expansion will support the eurozone in 3-6 months time, marking the bottom in EUR/USD.

In Danske Bank's FX Trading Portfolio, we lower our target on short EUR/USD to 1.20 from 1.25 - stop-loss at 1.30. Leveraged funds should stay short EUR/USD into the ECB meeting and the non-farm payroll.

To Read the Entire Report Please Click on the pdf File Below

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