Analysts at Danske Bank believe other currencies may very well be more exposed to optimism due to fiscal and monetary policies than the euro.
“EUR/USD appears generally supported by risk sentiment as optimism is spreading with regard to coronavirus and the effectiveness of both monetary and fiscal measures being taken.”
“Notably yesterday, when volatility came down, spreads narrowed and the most beaten of all equity markets outperformed and/or did quite well, EUR was still unable to hold on to its gains.”
“Upside in EUR/USD is still quite some time away, even if markets improve, and we continue to target 1.05 on 1M and 1.07 on 12M horizon.”
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