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While EUR/USD briefly went above 1.10 last week, the cross ended lower on the potential for a renewed US-China skirmish and EU hashing out its internal differences. Analysts at Danske Bank see the next developments to unfold in a positive way for the shared currency.

Today, the German IFO survey for May is due at 08:00 GMT.

Key quotes

“We think EUR/USD will continue to move at 1.09 +- 2 figures, depending largely on global reflation trends.” 

“We tend to see the tactical risk as being towards the upside in spot; especially as the EU is likely to reach a grant-friendly budget deal given both France and Germany are behind this, coronavirus keeps fading and global easing already done.”