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Chief Strategist at Danske Bank Valtteri Ahti noted the solid momentum around the greenback remains well and sound.

Key Quotes

USD strength remains the name of the game in FX markets: in our view, yesterday’s price action underlines that it is not all about safe-haven demand amid fragile risk sentiment, USD simply looks better carry- and growth-wise than its peers; clearly, the continued weakness in CNY also plays a role”.

“We are looking for EUR/USD to test this year’s lows as EUR lacks ECB rate support while feeling the pain from Italy, Merkel’s exit and a meagre growth outlook. Even with decent eurozone inflation data likely today, we think EUR will trade heavy still near term as rate support remains absent”.