Home EUR: ECB To Strike A Cautiously Optimistic Tone Next Week; Staying Bullish EUR/USD Towards 1.15 – Danske
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EUR: ECB To Strike A Cautiously Optimistic Tone Next Week; Staying Bullish EUR/USD Towards 1.15 – Danske

EUR/USD continues to gain ground and has punched above the 1.13 mark. What is the forecast for the pair in the coming months?

Here is their view, courtesy of eFXdata:

Danske Research discusses its expectations for next week’s ECB July policy meeting.

At next week’s ECB policy meeting we expect a repetition of recent comments from various governing council members, thereby striking a cautiously optimistic tone compared to the June projections,” Danske notes.

“For spot FX, the direction and stance of the ECB and euro area fiscal politics are, in our view, quite well priced and communicated (though to a lesser extent when it comes to the outcome for Brexit). In turn, it will be the extent and speed of the global recovery that sets the tone in EUR/USD.  We remain constructive and expect broad USD to decline over the coming months and our 3M forecast is 1.15,” Danske adds.

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Kenny Fisher

Kenny Fisher

Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.