EUR/USD: Trapped In A Range Around 1.13 With A Downside Tilt On a 3-Month Horizon – Danske

Mar 27,2019 16:22   Source:Forex Crunch

EUR/USD is drifting lower, trading in a limited range. What’s next?

Here is their view, courtesy of eFXdata:

Danske Research discusses EUR/USD outlook and maintains a neutral bias with a downside tilt over the next 3 months. Beyond that, Danske is constructive on EUR/USD on a longer-time frame.

On a 3M horizon, we see EUR/USD trapped in a range around 1.13 but with risks tilted to the downside as ECB will be forced to keep a soft stance at a time where Fed looks more side-lined. Relative cyclical hints will be key near term – but a trade deal could be a kneejerk USD positive,” Danske notes.

Beyond the 6M horizon, a drift higher will materialise as the skies clear a bit for the Eurozone, but we still merely target 1.17 in 12M. For now, ECB has effectively put a lid on the cross and with still heavy carry, we continue to advocate risk reversals when hedging USD income/assets,” Danske adds.

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The post EUR/USD: Trapped In A Range Around 1.13 With A Downside Tilt On a 3-Month Horizon – Danske appeared first on Forex Crunch.



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