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5 May 2015
EUR/USD ready to resume the downside – Danske Bank
FXStreet (Edinburgh) - According to Pernille Nielsen, Senior Analyst at Danske Bank, the pair could resume its previous downtrend in the near term.
Key Quotes
“The ongoing correction in FX crosses characterised by the general USD weakness and a EUR rebound in recent weeks, could have further to go if the US non-manufacturing ISM report adds to the impression of continued softness in the US economy”.
“We stress, however, that the index is at a high level currently and we would not read too much into a small drop”.
“Indeed, instrumental for our call that EUR/USD will move lower again on a 3M horizon will be a pick-up in consumer spending, as this would make the Fed more comfortable that inflation will eventually pick up”.
Key Quotes
“The ongoing correction in FX crosses characterised by the general USD weakness and a EUR rebound in recent weeks, could have further to go if the US non-manufacturing ISM report adds to the impression of continued softness in the US economy”.
“We stress, however, that the index is at a high level currently and we would not read too much into a small drop”.
“Indeed, instrumental for our call that EUR/USD will move lower again on a 3M horizon will be a pick-up in consumer spending, as this would make the Fed more comfortable that inflation will eventually pick up”.