EUR/USD upside should hold around 1.2090 – Danske Bank

Mathias Mogensen, Analyst at Danske Bank, assessed the prospects for the pair as well as today’s docket.

Key Quotes

“EUR/USD edged slightly lower yesterday with little news to drive the cross as Jerome Powell’s confirmation hearing in the Senate as expected did not bring much news apart from suggesting the new Fed Chair will be a Yellen 2.0”.

“Today will bring a stream of eurozone confidence indicators as well as German inflation figures, which could be key to whether positive euro sentiment will hold up near term”.

“There is set to be a range of Fed speakers this afternoon where we will be looking for more signs as to whether the FOMC is becoming hesitant on hikes due to a lack of inflation”.

“We still think it is too early for the cross to break much higher and look for 1.2092 (8 Sep high) to hold on the upside. Key downside levels to watch are 1.1820 and 1.1773”.