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Jan 08 - 01:24 PM
EUR/USD: Too Early For A Frim Move Away From 1.13; EUR/GBP: Boxed In 0.8800-0.9060 Range - Danske
First appeared on eFXplus on Jan 08 - 11:30 AM

Danske Research discusses EUR/USD and EUR/GBP outlook and adopts a neutral bias in the near-term.

"While the Fed may have provided a necessary condition for risk sentiment to stabilise, it is not a sufficient one, in our view: we need the global cyclical stance to show signs of a turn and this is unlikely to happen in the very near term. This is a key reason why we continue to see support for JPY, CHF and, to some extent, USD.

Indeed, for EUR/USD, Fed-induced USD strength may be fading for now but risk sentiment and the ECB mean it is still too early for a firm move away from 1.13," Danske argues. 

"As the UK parliament re-ignites the Brexit deal talks, EUR/GBP is likely to remain ‘boxed’ in the 0.8800-0.9060 range until further clarification with a prominent risk that the process drags out," Danske adds. 

Source:
Danske Research/Market Commentary

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