EUR/USD could still squeeze higher – Danske Bank

FXStreet (Edinburgh) - According to analysts at Danske Bank, there is still room for further upside in the pair in the near term.

Key Quotes

“The CNY depreciation has hit Asia ex. Japan (AXJ) currencies hard and is also impacting major currencies particularly EUR”.

“This is understandable as the market is factoring in a declining likelihood of the Fed beginning its rate hiking cycle. This could drive further EUR/USD gains near term”.

“However, we still think the Fed is keen to get started with its rate hiking cycle which eventually should drive renewed EUR/USD losses”.