22 Jul 2015
EUR/USD expected to slip towards 1.04 in 3-month – Danske Bank
FXStreet (Edinburgh) - Analysts at Danske Bank expect the single currency to keeps depreciating vs. the greenback, testing the 1.04 level in the near term.
Key Quotes
“The latest IMM positioning report shows that speculators added to their bearish EUR/USD post the Greek deal announcement”.
“While the change in EUR-positioning is not significant from a historical perspective, the shift has sent non-commercial positioning in the single currency below the 15th percentile for the first time in five weeks”.
“Fundamentally, we expect more downside in EUR/USD from here primarily driven by three factors: 1) non-EUR denominated investors’ high hedge ratios will drive outright EUR-selling, 2) relative monetary policy will regain centre stage with focus shifting to a re-pricing of the first Fed-hike, 3) Greece worries will continue to be a EUR negative”.
“We target EUR/USD at 1.04 in 3M”.
Key Quotes
“The latest IMM positioning report shows that speculators added to their bearish EUR/USD post the Greek deal announcement”.
“While the change in EUR-positioning is not significant from a historical perspective, the shift has sent non-commercial positioning in the single currency below the 15th percentile for the first time in five weeks”.
“Fundamentally, we expect more downside in EUR/USD from here primarily driven by three factors: 1) non-EUR denominated investors’ high hedge ratios will drive outright EUR-selling, 2) relative monetary policy will regain centre stage with focus shifting to a re-pricing of the first Fed-hike, 3) Greece worries will continue to be a EUR negative”.
“We target EUR/USD at 1.04 in 3M”.