EUR/USD to consolidate around current levels – Danske Bank
EUR/USD has remained rangebound this week, trading with a slight downward bias within the 1.04-1.05 range, as FX markets largely shrugged off Trump's latest tariff threats after he proposed 25% tariffs on autos, chips, and pharma imports , Danske Bank's FX analyst Mohamad Al-Saraf reports.
Weekly jobless claims are on the agenda
"The January FOMC meeting minutes indicated that as long as the economy remains near full employment, policymakers would need to see further tangible progress on inflation before considering rate cuts. Market reaction was muted, though front-end yields edged slightly lower."
"Today is expected to be another quiet session, with only weekly jobless claims on the agenda. Market focus will shift to tomorrow's PMI releases from the US and euro area, where it will be key to see if momentum builds following January's surprisingly strong euro area PMIs."
"Germany's elections this weekend could gain traction, particularly if a CDU/CSU-led coalition is formed, potentially signalling a shift in fiscal policy that could support Germany's weak growth outlook and, in turn, the EUR. We continue to expect EUR/USD to consolidate around current levels in the near term while maintaining our strategically bearish outlook."
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FXStreet Insights Team
FXStreet
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