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Spot is seen navigating the area below 1.1500 the figure in the very near term, according to Jakob Christensen, Chief Analyst at Danske Bank.

Key Quotes

“This week, focus in FX markets will remain on wobbly EM in general and Turkey in particular. PMIs will be interesting to see in terms of whether the recent pattern that the US is surprising on the downside and the eurozone on the upside when it comes to economic data will be sustained; indeed, this is what our quantitative business cycle models hint at for the months ahead”.

“Also, the Fed’s annual gathering of central bankers in Jackson Hole will take place this week: the event has in the past been used for announcing policy shifts but our base case is that no such thing will happen this year, with the Fed on ‘hiking autopilot’ and the ECB ‘on hold’ for at least another year”.

“Thus, we expect EUR/USD to be sticky below 1.15 for now as USD carry and eurozone political risks weigh near term”.