EUR/USD seen at 1.04 in 1-month – Danske Bank

Analysts at Danske Bank gave their prospects for the pair in the near term horizon.

Key Quotes

“We maintain our call that EUR/USD should move lower on a 1-3M horizon, supported by relative rates and our expectations that the Trump administration is likely to announce details in coming months about corporate tax reforms, border tax adjustments and HIA2”.

“Moreover, we see European politics as a modest EUR negative in comings months and short positioning in EUR/USD is no longer in stretched territory, which should increase the sensitivity to relative rates. We expect that most of the USD positive factors will be priced in over coming months”.