EUR/USD dips should remain shallow – Danske Bank

Chief Analyst at Danske Bank Jens Sorensen believes occasional dips in spot to be shallow.

Key Quotes

“EUR/USD has little changed over the past 24 hours in a quiet session where US markets were closed due to Labour Day”.

“Expect a bit more volatility in the EUR driven by ‘last minute’ positioning going into the ECB meeting on Thursday. We expect Mario Draghi to address the pace of EUR appreciation, which should help put a lid on EUR/USD near term and with the cross trading above 1.19 there could be some room for EUR/USD to absorb some worries from the ECB sending the cross somewhat lower initially”.

“However, we maintain that dips in EUR/USD will be shallow and short-lived, and we believe any decline should be used to position for a further move up in EUR/USD on a 6-12M horizon”.