EUR/USD: Still Targeting 1.05 N-Term; USD/JPY: May Start Peaking – Danske

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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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Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.

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