The U.S. dollar continues to record strong gains against its major rivals. What is the near-term outlook for EUR/USD and USD/JPY?
Here is their view, courtesy of eFXdata:
Danske Research still targets 1.05 in EUR/USD in the near-term, while expects USD/JPY to start peaking.
“More active use of balance sheets has been a common denominator as central banks have stepped up to the tremendous financial challenge that COVID-19 is proving on top of the human tragedy it represents. Near term, relative-rate moves have been side-lined and gyrations in risk assets such as equities, credit and commodities have come to rule FX,” Danske notes.
“EUR/USD – We now target 1.05 short term; US fiscal stimulus and improving risk/credit/funding sentiment are key upside risks…USD/JPY – Broad dollar strength is still ruling, but cross may be peaking,” Danske adds.
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