Senior Analyst at Danske Bank Morten Helt sees the greenback staying strong so far this week.
Key Quotes
“USD looks set to stay strong into this week’s midterm election after a decent jobs report kept alive the sense of US growth outperformance and hinted that the ECB is contemplating a new TLRO”.
“In the event of a split Congress following the midterms (results due Wednesday morning), USD should stay bid but still remain in a range around 1.15 on a 3M horizon, as any new fiscal boost should be confined to infrastructure and as continued trade talks with China are likely”.
“Hence, we still think EUR/USD could be in for a break of 1.13 near term – not least if the Fed keeps up its tightening rhetoric this week despite the recent risk sell-off”.
Share
