Analysts at Danske Bank offer their short-term outlook on EUR/USD, in light of Fed’s reflation narrative, which will keep the greenback pressured. Key quotes “Worries over virus developments outside the US have started to surface, so is now the time to get EUR negative again? We doubt that we will witness the large-scale closures seen during the spring and yesterday’s price action suggests that one probably needs to look for US rate rises and/or tech outperformance to get very negative on EUR/USD short term. In our base case that Fed delivers on its inflation hints with enhanced forward guidance in September, a reflation narrative is set to keep USD under pressure in Q3 and make a test of new year-highs in EUR/USD the dominating risk into the autumn. If that base case plays out, it would also spell good news for commodity currencies and in particularly the NOK enjoying a large beta to both commodities and European equities. A key downside risk to EUR/USD and commodity currencies is if Trump scraps the trade deal amid the current China software lash and/or election stress.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next S&P 500 Futures: Erases losses on reports that convalescent plasma reduces COVID-19 death rate FX Street 2 years Analysts at Danske Bank offer their short-term outlook on EUR/USD, in light of Fed’s reflation narrative, which will keep the greenback pressured. Key quotes "Worries over virus developments outside the US have started to surface, so is now the time to get EUR negative again? We doubt that we will witness the large-scale closures seen during the spring and yesterday's price action suggests that one probably needs to look for US rate rises and/or tech outperformance to get very negative on EUR/USD short term. In our base case that Fed delivers on its inflation hints with enhanced forward guidance in… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
