EUR/USD still seen at 1.04 in 1-month – Danske Bank

Pablo Piovano FXStreet

Senior Analyst at Danske Bank Sverre Holbek still expects the pair to grind lower to the 1.04 area in a month’s view.

Key Quotes

“The FX market interpreted the comments from ECB President Mario Draghi at yesterday’s press conference as dovish, which sent EUR/USD below 1.06. In general, this is in line with our short-term view on EUR/USD, where we look for EUR/USD to go 1.04 in 1M and 1.05 in 3M”.

“We note that it is not a one way street lower for EUR/USD in the near term though”.

“The change in US cash balance policy will result in a USD cash deluge from the treasury account in Q1. The increase in USD supply will ease upward pressure on the USD and, hence, downside potential for EUR/USD”.

Sell 42%

Buy 58%

Avg Sell Price 1.0585

Avg Buy Price 1.0600

Liquidity Distribution

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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