Chief Analyst at Danske Bank Jens Sorensen sees the pair could gather extra wings on disappointing US data.
“Today’s focal point of EUR/USD is the US CPI release today. Five out of the past six months, US CPI has disappointed consensus immediately, sending EUR/USD 50-60pips higher on every occasion”.
“If we are right in looking for a slight disappointment in the release today, we could see a spike in EUR/USD. In addition, we note that concerns about a tighter market for USD over year-end have subsided a bit leading to a slight narrowing of the EURUSD CCS, adding further near-term support to EUR/USD”.
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