EUR/USD expected to reach 1.04 in a month’s view – Danske Bank
Senior Analyst at Danske Bank Sverre Holbek still sees the pair testing the 1.04 area in the very near term and 1.05 in a 3-month horizon.
Key Quotes
“Focus on the new US administration’s currency and trade policy resurfaced on Tuesday, after comments from Trump’s trade adviser Peter Navarro that the USD65bn US trade deficit with Germany was one of the most difficult trade issues and bilateral discussions were needed to reduce it outside of EU restrictions”.
“Navarro's comments followed his complaints last month that Germany was exploiting a weak euro to gain a trade advantage. Despite the remarks, EUR/USD remained relatively stable, closing only slightly weaker at 1.057”.
“The cross is likely to continue to trade in the current range for now as investors await the upcoming ECB meeting on Thursday, but we see further downside potential on a 1M (1.04) and 3M (1.05) horizon”.