Danske Bank has its gaze set on the upcoming EZ (Eurozone) PMI data, expecting it to be a significant influence on the EUR/USD pair. Here are the salient points from Danske's analysis:

1. Anticipation in the Short-Term:

• Macro Events: With no major macro events lined up before the release of the PMI data, EUR/USD is anticipated to remain within a certain range.

2. Bundesbank's Stance:

• Inflation Concerns: The Bundesbank's recent note revealed its growing concerns over the inflation outlook for Germany. This apprehension stems from the fact that wage growth in the country continues to be high and is not in line with the 2% inflation target.

3. Expectations from the ECB:

• Rate Hike: Based on the aforementioned inflation outlook, Danske believes the European Central Bank (ECB) will opt for another 25bp rate hike during its September meeting. The current market pricing indicates that there's roughly a 50% probability for this move.

4. Strategy for EUR/USD:

• Bearish Outlook: Danske retains a bearish perspective on the EUR/USD cross.
• Selling Strategy: The bank recommends capitalizing on any short-term upticks in the EUR/USD, advising to sell during these potential rallies. The rationale behind this strategy is the anticipation of the PMI data, which might further highlight the growth disparity between the Eurozone and the US.

Conclusion: All eyes are on the imminent EZ PMI data. Danske, influenced by inflation concerns and potential growth disparities, maintains a bearish stance on the EUR/USD, advocating for selling during any brief rallies ahead of the PMI release.