EUR/USD: Nothing much to drive – Danske Bank

Sandeep Kanihama FXStreet Contributor

Christin Tuxen, chief analyst at Danske Bank, explains that the EUR/USD temporarily dropped below 1.12 yesterday further triggering a small rebound in implied volatility.

Key Quotes

“The move was not related to any particular headline or data release and coincided with a rally in US stocks on stronger earnings. At the same time, US rates dropped as the market priced a higher probability of Fed cuts over the coming years.”

“From a technical point of view, it means the market will keep an eye on whether we could see a test near-term of the 1.1177 low from 7 March. There is not much on the calendar to drive EUR/USD before next week.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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