EUR/USD seen weaker in the short-term – Danske Bank

Senior Analyst at Danske Bank Sverre Holbek expects the pair to weaken further within the next month.

Key Quotes

“EUR/USD dipped on Wednesday, hitting a five-day low at 1.0536, after a strong ADP jobs report in the US reinforced market expectations of a Fed hike at the meeting next week”.

“The ECB decision this afternoon is likely to set the tone for EUR/USD today and as we expect the ECB to maintain its dovish stance, we could see a further move lower in the cross”.

“In the near term, we also remain bearish on EUR/USD on the back of relative rates, European politics and the possibility of corporate tax reforms and a Homeland Investment Act 2 from the US administration, expecting EUR/USD to reach 1.04 in 1M”.