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13 Mar 2015
EUR/USD decline could accelerate in H1 – Danske Bank
FXStreet (Edinburgh) - Morten Helt, Senior Analyst at Danske Bank, expects spot to come under renewed selling pressure during the first half of the year.
Key Quotes
“Momentum in the USD rally eased yesterday and EUR/USD bounced, probably driven by some profit-taking following the past days’ rapid decline”.
“According to short-term valuations and technically the cross still looks oversold”.
“However, we expect any bounce in EUR/USD to be short-lived and look for further downside in the cross in the coming months ahead of a possible rate hike in June”.
“We have been forecasting EUR/USD to fall in H1 and to bounce in H2. That is still our base case and as such we think that the USD should strengthen further ‘now rather than later’”.
Key Quotes
“Momentum in the USD rally eased yesterday and EUR/USD bounced, probably driven by some profit-taking following the past days’ rapid decline”.
“According to short-term valuations and technically the cross still looks oversold”.
“However, we expect any bounce in EUR/USD to be short-lived and look for further downside in the cross in the coming months ahead of a possible rate hike in June”.
“We have been forecasting EUR/USD to fall in H1 and to bounce in H2. That is still our base case and as such we think that the USD should strengthen further ‘now rather than later’”.