14 Jul 2015
EUR/USD bearish bias - Danske
FXStreet (Guatemala) - Analysts at Danske Bank noted the fundamental conditions surrounding EUR/USD.
Key Quotes:
"<a href="http://www.fxstreet.com/analysis/eur-usd-forecast/">EUR/USD initially squeezed higher on news of a conditional third bailout for Greece with EUR/JPY being the main beneficiary."
"However, the rally was short-lived which in our view is due to two factors: 1) A Greek deal was highly anticipated last week and 2) there is still uncertainty regarding the details of the deal. In addition, falling volatility should support a return of the euro as the funding currency of choice. Further out, increased expectations of Fed rate hikes in 2015 as Greek uncertainty fades should trigger a new fall in EUR/USD in coming months."
Key Quotes:
"<a href="http://www.fxstreet.com/analysis/eur-usd-forecast/">EUR/USD initially squeezed higher on news of a conditional third bailout for Greece with EUR/JPY being the main beneficiary."
"However, the rally was short-lived which in our view is due to two factors: 1) A Greek deal was highly anticipated last week and 2) there is still uncertainty regarding the details of the deal. In addition, falling volatility should support a return of the euro as the funding currency of choice. Further out, increased expectations of Fed rate hikes in 2015 as Greek uncertainty fades should trigger a new fall in EUR/USD in coming months."