EUR/USD: Medium-term drivers indicate that the pair is overvalued – Danske Bank

EUR/USD is now firmly below the 1.10 mark. Economists at Danske Bank maintain a clear sell-on-rallies bias for the cross

EUR/USD had defied the turnaround in equities

“In recent weeks, EUR/USD has defied the shift and sudden underperformance of Eurozone equities, which we otherwise deem to have been an important driver behind the EUR/USD rally since September (Eurozone equities overperforming during this period).”

“Our tactical conviction on EUR/USD is not high, but we maintain a clear sell-on-rallies bias for the cross as we still think medium-term drivers indicate that EUR/USD is overvalued (and not undervalued).”