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EUR/USD has moved higher over the last month, trades near the 1.13 level, as global risk sentiment has improved and economists at Danske Bank see the pair at 1.15 on a one-to-three month horizon. 

Key quotes

“The potential for a stronger EUR/USD is highly linked to the possibility of an uptick in global manufacturing and US inflation. We view the Fed as being supportive of such inflationary policies, at least short term. However, do note we suggest watching the financial canaries: if DAX, autos, banks or a host of EM currencies enter a correction, EUR/USD will quite likely also move lower.”

“We set EUR/USD at 1.15 in one-to-three months and but we are generally (still) negative on EUR/USD and forecast 1.11 in six-to-twelve months.”