EUR/USD eyes 1.18 in the long run – Danske Bank
|Chief Analyst at Danske Bank Christin Tuxen sees EUR/USD heading to the 1.18 area within a year’s view.
Key Quotes
“Political risks have shifted from the eurozone to the US and have induced a level shift in the cross recently”.
“With the ECB set to be side-lined in coming months by a sustained deterioration in the inflation outlook, the euro should be vulnerable to a likely loss in cyclical momentum in the Eurozone”.
“A Fed determined to move on with policy normalisation should lend some support to the USD near term, but we stress that the significant move to watch out for on a 12M horizon will likely be fuelled by an ECB shift away from further easing”.
“Longer term, we thus continue to emphasise that fundamentals remain supportive. We still maintain that risks are to the downside near term and are merely rolling our longer-term forecasts to target the pair at 1.11 in 1M, 1.09 in 3M (unchanged), 1.12 in 6M (prev. 1.11) and 1.18 in 12M (prev. 1.16)”.
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.