Danske Research discusses EUR/USD outlook and maintain a bearish bias over the coming weeks.
"We appear to be seeing a negative correlation between commodity prices and EUR/USD. We speculate this is likely the case as rising commodities are a negative terms-of-trade shock to the European economy (higher import prices) and conversely, declining commodities are helpful," Danske notes.
"We generally we do not expect much of a setback in commodities at the moment and we think EUR/USD risks remain to the downside. Hence, at current, we see the upticks in EUR/USD as noise and not signal," Danske adds.