Danske Research discusses EUR/USD outlook and maintains a bearish bias over the coming weeks.
"upbeat (e.g. EUR/NOK declined, and ZAR outperformed), we see EUR/USD lower. It supports our view that new lows in EUR/USD will likely be easier to get amid a positive environment where capital flows shift towards the US and commodity prices erode European terms-of-trade," Danske notes.
"Equally, this shows that a lower EUR/USD is consistent with a positive risk environment (albeit a value rotation would be EUR-positive though we do not see the latter.)," Danske adds.