Senior Analyst at Danske Bank Mikael Milhoj believes the pair could grind lower in the medium to longer run mainly on the likeliness of extra tightening by the Fed.
“In the majors, EUR/USD continued higher yesterday during the European trading session without any news or data releases driving the cross”.
“FX markets did not react much to the FOMC minutes released last night, which is fair in our view, as there was nothing new of great importance”.
“We still see EUR/USD around current levels on a 1-3M horizon with risks skewed to the downside due to stretched long EUR/USD positioning and as we expect the Fed to hike in December, (market is pricing in a 74% probability of a December hike)”.
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 securities. 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 Forex 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.