EUR/USD: Growing divergence – Danske Bank
|Analysts at Danske Bank do not expect October’s ECB meeting to be a market mover for EUR/USD.
Key Quotes
“Significant policy changes are still too far on the horizon to grab FX market’s attention.”
“That said, we take the opportunity to reflect over the growing divergence in EUR-USD rate space and the impact on EUR/USD exchange rate. As the chart to the right shows, we are currently experiencing growing divergence.”
“The rate divergence and carry coupled with European political risks related to Brexit and Italy remains key in our call for EUR/USD to stay close to 1.15 on 3M.”
“On 6M and 12M we expect EUR/USD to go to 1.18 and 1.25 as ECB monetary policy normalisation will start to support the pair.”
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.