Danske Research likes selling EUR/USD rallies around current levels.
"We focus on the narrative where 1) reopening/catch-up effects are fading, 2) the end to fiscal stimulus and 3) the beginning of monetary tightening. The market response to this is to add up on financial resilience," Danske notes.
"Being long dollar will remain an integral part of that cross asset rotation. Thus, we recommend selling the rally in EUR/USD," Danske adds.