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Oct 31 - 11:00 AM
EUR/USD: EUR/USD Testing This Year's Lows; Set To Remain Heavy N-Term - Danske
First appeared on eFXplus on Oct 31 - 09:07 AM

Danske Research discusses EUR/USD outlook and notes note that USD strength remains the name of the game in FX markets as EUR/USD is testing this year's lows.

"Yesterday’s price action underlines that it is not all about safe-haven demand amid fragile risk sentiment, USD simply looks better carry- and growth-wise than its peers; clearly, the continued weakness in CNY also plays a role.

As we wrote this week’s - EUR/USD headed for test of 1.13 (see here), we are looking for EUR/USD to test this year’s lows as EUR lacks ECB rate support while feeling the pain from Italy, Merkel’s exit and a meagre growth outlook.

Even with decent eurozone inflation data likely today, we think EUR will trade heavy still near term as rate support remains absent," Danske argues. 

Source:
Danske Research/Market Commentary

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