Danske Research discusses EUR/USD outlook in light of revising down its forecasts.
"We lower our EUR/USD forecast, from 1.15 to 1.13 in 12M and similarly over time. This reflects our view that market themes are increasingly pro dollar. We expect to see 1) lower PMIs, 2) a further move towards tightening global liquidity conditions, 3) peak inflation concerns and 4) a further recovery in US jobs," Danske notes.
"These factors will weigh on EUR/USD over the coming quarters. In our view, the change in forecast implies risks to the forecast are balanced, as we see EUR/USD at 1.10-1.15 in a year," Danske adds.