EUR/USD remains a ‘buy on dips” – Danske Bank
|Senior Analyst at Danske Bank Mikael Miljoj suggested that dips in spot should remain shallow and could be regarded as buying opportunities.
Key Quotes
“EUR/USD came under continued downward pressure yesterday following a Reuters story regarding the ECB’s euro concerns ahead of next week’s meeting. While we stress that ECB worries over the pace of EUR appreciation is indeed likely to take centre stage for the FX market into next week's ECB meeting, we maintain that dips will be shallow and short-lived as the underlying forces for euro strength are strong in the current environment”.
“In our view, this means it will require an ECB that is willing to backtrack on exit talks and dig deeper yet into its toolbox in order to stem a continued EUR/USD uptick”.
“As it is not our call that such a significant retreat will materialise, we stress that the cross is a buy on dips”.
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.