EUR/USD seen below 1.15 by year-end – Danske Bank

Piet Christiansen, Senior Analyst at Danske Bank, noted spot could return to sub-1.1500 levels by end 2018.

Key Quotes

“In EUR/USD, we look for another dip below 1.15 before year-end 2018, and in light of the latest move higher in the spot and the fall in implied volatility, yesterday we closed our bullish EUR/USD seagull position”.

“We are still bullish on the cross for 2019 but we likely need the Fed to go on hold and/or for an ECB hike to be in sight for a move towards 1.20 to be sustained”.