EUR/USD seen at 1.11 in 6-month – Danske Bank

Analyst Mathias Mogensen at Danske Bank believes the pair could edge towards the 1.1100 area in the medium term.

Key Quotes

“EUR/USD initially bounced when Draghi said that the Government Council had not discussed an extension of QE. However, it fell back again when he said that they had not discussed tapering of QE either”.

“EUR/USD broke the important level of 1.0950 and we see relative interest rates and growth expectations as bearish EUR/USD near term, forecasting the cross at 1.08 in 3M”.

“Medium term, we continue to be EUR/USD bullish, forecasting 1.11 in 6M and 1.15 in 12M on valuation and the eurozone-US current account differential”.