USD: Negative bias to prevail? – Danske Bank

The stronger-than-expected US CPI print only briefly managed to push EUR/USD lower as the price action yesterday is testament to negative bias on USD in the market with the outlook for significant widening of the US public deficit, according to analysts at Danske Bank.

Key Quotes

“The downwards pressure on USD is also showing in USD/JPY which continues to trade on a heavy note. In the short term, we still see risks skewed to the downside for USD/JPY and EUR/JPY amid choppy market conditions and stretched short JPY positioning. Technically, next key support level in USD/JPY is seen at 106.51. Watch out for a reaction from the Bank of Japan, which seems to be the only place where USD/JPY could find some support at the moment.”

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.