Danske Research discusses the Fed rate outlook and EUR/USD target.

"For now, we stick with our baseline call of 2x25bp hikes in December and March. That said, we think it is generally justified that markets price in around 10% probability of a jumbo hike in December. Not only was the broad-based upside surprise in core CPI exactly what the Fed's Waller warned about in his remarks before the release, but we also heard more concerned remarks from the Fed's Bowman, who has typically been among the most dovish members of the committee," Danske notes.

"We still expect EUR/USD to continue trending lower from here, and target 1.10," Danske adds.