EUR/USD eyes 1.07 in 3-month – Danske Bank

Chief Analyst at Danske Bak Jakob Christensen sees the pair slipping towards the 1.07 area in a 3-month view.

Key Quotes

“For the EUR/USD, we are adjusting our forecasts in line with what we communicated before and immediately after Brexit”.

“We now forecast EUR/USD at 1.09 in 1M (1.11 previously), 1.07 (1.10) in 3M, 1.10 (1.14) in 6M and 1.14 (1.18) in 12M”.

“Short term, we expect increased political uncertainty in the eurozone and the prospects of further monetary easing to weigh on EUR/USD”.

“However, medium term we continue to expect that the undervaluation of the EUR and the large eurozone-US current account differential will support the EUR”.