EUR/USD risks pullbacks in the medium term – Danske Bank

Senior Analyst at Danske Bank Mikael Milhoj believes the pair could grind lower in the medium to longer run mainly on the likeliness of extra tightening by the Fed.

Key Quotes

“In the majors, EUR/USD continued higher yesterday during the European trading session without any news or data releases driving the cross”.

“FX markets did not react much to the FOMC minutes released last night, which is fair in our view, as there was nothing new of great importance”.

“We still see EUR/USD around current levels on a 1-3M horizon with risks skewed to the downside due to stretched long EUR/USD positioning and as we expect the Fed to hike in December, (market is pricing in a 74% probability of a December hike)”.