20 Oct 2015
EUR/USD keeps the 1.10-1.16 range – Danske Bank
FXStreet (Edinburgh) - Senior Analyst at Danske Bank Christin Tuxen expects the pair to remain in a consolidative range between 1.10 and 1.16.
Key Quotes
“We see EUR/USD range-bound between 1.10 and 1.16 in the coming months with a move lower as markets buy into a first Fed hike in early 2016”.
“Notably, our not-so-aggressive call on ECB easing (a mere extension of QE) limits the EUR downside from euro-area monetary policy”.
“The US yield curve is in for a repricing around the first Fed hike, but we think the market will price in a relatively shallow hiking cycle and thus cease to be a USD positive beyond Q1”.
Key Quotes
“We see EUR/USD range-bound between 1.10 and 1.16 in the coming months with a move lower as markets buy into a first Fed hike in early 2016”.
“Notably, our not-so-aggressive call on ECB easing (a mere extension of QE) limits the EUR downside from euro-area monetary policy”.
“The US yield curve is in for a repricing around the first Fed hike, but we think the market will price in a relatively shallow hiking cycle and thus cease to be a USD positive beyond Q1”.