Vladimir Miklashevsky, senior economist at Danske Bank, points out that the EUR/USD pair remains confined in a 1.12-1.16 range still as a weak euro cyclical story for now has dampened the likely positive impulse from a trade deal.
Key Quotes
“On Tuesday-Wednesday, the Fed’s Powell due to speak and we will look for hints on whether balance-sheet stabilisation could pave the way for more hikes as we look for.”
“Constructive dialogue from the US-China should help calm the nerves and benefit the commodity currencies, the Scandies and, to a smaller degree, EUR.”
“On Friday, US manufacturing PMIs will provide key hints as to whether the US is finally escaping the soft patch it has been in recently. Indeed, we think the US will recover shortly.”
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