15 Mar 2016
EUR/USD forecast: focus on US docket – Commerzbank and Danske Bank
The single currency remains in the vicinity of the 1.1100 handle vs. the dollar during the first half of the week while market participants get ready for today’s key US retail sales.
Morten Helt, Senior Analyst at Danske Bank, suggested “with improved risk sentiment and a more hawkish pricing of the Fed, we think the top side in EUR/USD is likely to be capped in the short term. We continue to see EUR/USD in a 1.05-1.15 range in the coming months but still hold the view that EUR/USD will head substantially higher in 2016”.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair’s “sharp post ECB drop took it to 1.0822 before it reversed its trend and even more brutally shot up to the 1.1200 region. This up surge led us to neutralize our immediate outlook as we suspect that the market is simply back in the middle of a rather large range”.
Morten Helt, Senior Analyst at Danske Bank, suggested “with improved risk sentiment and a more hawkish pricing of the Fed, we think the top side in EUR/USD is likely to be capped in the short term. We continue to see EUR/USD in a 1.05-1.15 range in the coming months but still hold the view that EUR/USD will head substantially higher in 2016”.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair’s “sharp post ECB drop took it to 1.0822 before it reversed its trend and even more brutally shot up to the 1.1200 region. This up surge led us to neutralize our immediate outlook as we suspect that the market is simply back in the middle of a rather large range”.