EUR/USD has had a stubborn 2019. Where will it go in 2020?
Here is their view, courtesy of eFXdata:
Danske Research discusses its EUR/USD outlook and adopts a constructive bias over the coming year.
“Risks are broadly skewed on the downside for USD, as risk sentiment stays supported by a lenient Fed amid a brightening cyclical outlook globally. Further, EUR/USD may get some support from eurozone outperformance versus the US according to our equity strategists. This is likely to make it difficult for EUR/USD to edge firmly below 1.10 for now and puts 1.12 within reach going into the new year. However, we stress that this is not the beginning of a steady correction higher: while the cross remains undervalued, we still believe the lack of rate support for EUR caps upside in the pair, i.e. the ECB is essentially a constant for FX markets for now,” Danske notes.
“We look for EUR/USD to trade close to 1.11 on 1-3M and look for a rise to 1.13 on 6M on resumed Fed easing and further to 1.15 in 12M as a moderate global recovery is sustained and as the Fed supports US inflation outperformance versus the eurozone,” Danske adds.
For lots more FX trades from major banks, sign up to eFXplus
By signing up for eFXplus via the link above, you are directly supporting Forex Crunch.
Share
