According to analysts from Danske Bank, a EUR/USD appreciation on the medium to long-term is on the agenda, driven by an European Central Bank initiating its cycle, euro-zone capital outflows fading and a strong valuation. Key Quotes: “The US economy has recently proved that it is still going strong. While we still look for some loss of momentum into 2019, fiscal tailwinds remain. Meanwhile euro-zone data has come out a tad on the weaker side lately, putting the outlook for a shift in favour of a higher EUR/USD on hold. The Fed delivered the widely expected 25bp hike in September and will most likely deliver another in December. The outlook for relative rates is thus still tilted in favour of a lower EUR/USD near term.” “The US-led trade war will linger as a USD driver ahead of the US midterm elections. We also note the small but non-negligible risk that the Trump administration could opt for intervention to weaken USD as a ‘quick fix’ to the current-account deficit and/or in case of a faltering growth outlook.” “The strong US economy will keep the Fed in the hiking game for now and add to the carry support to USD – not withstanding recent Trump calls for slowing the pace of tightening. Coupled with the risk of setbacks on Italy and Brexit negotiations, this should leave EUR/USD in a range around 1.15 on a 3M horizon. Medium term, the euro capital outflows of recent years will fade as the first ECB hike draws closer. Alongside valuation, this is set to support EUR/USD in 6-12M. We see EUR/USD at 1.15 in 1M, 1.15 in 3M, 1.18in 6M, and 1.25 in 12M.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USD/JPY to be muted on BoJ – Nomura FX Street 4 years According to analysts from Danske Bank, a EUR/USD appreciation on the medium to long-term is on the agenda, driven by an European Central Bank initiating its cycle, euro-zone capital outflows fading and a strong valuation. Key Quotes: "The US economy has recently proved that it is still going strong. While we still look for some loss of momentum into 2019, fiscal tailwinds remain. Meanwhile euro-zone data has come out a tad on the weaker side lately, putting the outlook for a shift in favour of a higher EUR/USD on hold. The Fed delivered the widely expected 25bp hike in… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
