By eFXdata — Mar 03 - 09:30 AM
Danske Research maintains a strategic bearish bias on EUR/USD but sees a scope for a move higher in the near-term.
"EUR/USD back around 1.06 mark as focus is back on rising US yields relative to Euro Area yields. Further, an upward revision to US unit labour costs also supported the USD across the board suggesting the price businesses pay for labour is still increasing and hence consistent with the resilient US labour market," Danske notes.
"Despite the broad USD appreciation yesterday, we have recently highlighted that although we still have a bearish stance on the cross on the strategic horizon, we recognize that EUR/USD could be challenged on the tactical leg in the short-term," Danske adds.
Danske Research/Market Commentary