EUR/USD dips on USD relief rally – Danske Bank

FXStreet Insights Team FXStreet

EUR/USD edged lower toward the 1.14 mark, as the broader USD staged a modest rebound across the G10 space, Danske Bank's FX analysts report.

Buy-the-dip bias intact amid USD positioning risks

"The move followed easing signals on the trade front, with Treasury Secretary Bessent noting that the tariff standoff with China is 'unsustainable,' triggering a mild relief rally in risk assets."

"In this week's edition of Reading the Markets USD, we highlight that aggregate USD positioning is now approaching stretched short territory, while the cost of hedging further USD downside has reached record highs in the options market."

"Overall, with investor confidence in US assets continuing to deteriorate and concerns over the economic outlook potentially deepening, we prefer to tactically buy EUR/USD on dips and maintain a strategically bullish stance on the cross, now targeting 1.22 over the next 12M."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.