12 May 2015
EUR/USD could test 1.15, EUR/GBP seen lower – Danske Bank
FXStreet (Edinburgh) - Morten Helt, Senior Analyst at Danske Bank, believes EUR/USD has still some room to squeeze higher.
Key Quotes
“FX markets are stabilising in line with other asset classes. The impulsive move in EUR/USD and Bunds late last week followed by some stabilisation suggests that we will be in for calmer markets this week”.
“However, we believe that the reduction of EUR shorts could have further to go and warn of a new leg higher in EUR/USD ahead of 1.15”.
“The sharp move lower in EUR/GBP following the election can be explained by focus returning to economics where the UK shines relative to the euro zone”.
“Uncertainty about the UK's EU membership is simply too far away for the markets to digest now. Expect EUR/GBP to trade with a heavy tone near term”.
Key Quotes
“FX markets are stabilising in line with other asset classes. The impulsive move in EUR/USD and Bunds late last week followed by some stabilisation suggests that we will be in for calmer markets this week”.
“However, we believe that the reduction of EUR shorts could have further to go and warn of a new leg higher in EUR/USD ahead of 1.15”.
“The sharp move lower in EUR/GBP following the election can be explained by focus returning to economics where the UK shines relative to the euro zone”.
“Uncertainty about the UK's EU membership is simply too far away for the markets to digest now. Expect EUR/GBP to trade with a heavy tone near term”.