EUR/USD has been trading around the 1.09 level. What is the outlook in the near-term?
Here is their view, courtesy of eFXdata:
Danske Research discusses EUR/USD outlook and maintains its target at 1.09, through Q3.
“In our view, there is an economic/political/debt deflation linked tail risk, which is holding down EUR/USD. If we enter a period of economic and political stabilization, the absence of realized but currently priced-in risk could add to EUR strength. In our view, the near-term may indeed prove to be such, which is why we keep our forecast unchanged at 1.09,” Danske notes.
“Talks of fiscal and monetary tightening by year-end and lack of global coordination could eventually be renewed drivers for EUR weakness,” Danske adds.
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