Trade wars are dominating trading and moving currencies. Where next for the major pairs?
Here is their view, courtesy of eFXdata:
Danske Research discusses USD/JPY and EUR/USD tactical outlook and expects a move towards 105 and 1.10 respectively.
USD/JPY is still trading with a heavy tone as global bond yields are making new lows and commodity prices remain under pressure;another test of 105 should be on the cards,” Danske notes.
“Yesterday, dovish comments from ECB’s Rehn regarding September’s easing move took EUR/USD lower towards 1.11 after the pair had otherwise been surprisingly steady this week. A move to 1.10 is likely for EUR/USD short term. On a 6-12M horizon we do stress, however, that EUR/USD is likely to edge higher yet again as we are likely to see a Fed that moves more aggressively on easing than its recent hesitant approach points to,” Danske adds.
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