Jens Pedersen, Senior Analyst at Danske Bank, expects the pair to keep the consolidative theme in the next 6 months.
Key Quotes
“There was broad-based USD strength yesterday, seemingly driven by trade tensions easing a bit after Trump refrained from invoking the feared emergency law to curb Chinese access to US technology”.
“We stress, however, that tensions are not set to abate just yet and that more tariffs and retaliation with it are likely to be a continued drag on EUR/USD near term”.
“We notably reiterate that with EUR/USD is set to be rangebound in 0-6M, risk reversals are attractive for hedging USD receivables; for clients with USD expenses, we advocate knock-in forwards”.
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