EUR/USD still seen lower despite of Fed tone – Danske Bank

Chief Analyst at Danske Bank Allan von Mehren expects the pair to grind lower in the next months.

Key Quotes

“The Fed was somewhat more dovish than what we had anticipated but as expected tits communication did not drive any significant repricing of the short end of the US curve”.

“What markets are left with is a Fed explaining that it does not know when the next hike is due, as it all comes down to incoming data”.

“As we are still positive about the US economy, we maintain that the cyclical picture together with higher US rates favours a lower EUR/USD in the coming months. Indeed, the last year has shown that when repricing happens, it happens fast”.