Home Forex EUR/USD likely to move lower further, targeting 0.95 in 12 months – Danske Bank

EUR/USD likely to move lower further, targeting 0.95 in 12 months – Danske Bank

by SuperiorInvest

According to analysts at Danske Bank, the US dollar will continue to move higher against the euro in the coming months. They forecast and EUR/USD the pair at 0.96 for the three-month period and at 0.95 for the year.

Key quotes:

“A big negative terms of trade shock for Europe vs. The US, further cyclical weakness among trading partners, coordinated tightening of global financial conditions, expanding USD strength and downside risk for the Eurozone keep us focused on EUR/USD. still lower (targeting 0.95) – a view not shared by the consensus.”

“The key risk to EUR/USD moving towards 1.15 is a weakening of global inflationary pressures and an increase in industrial production. However, the “transition” has lost substantial credibility and European industrial production remains weak. This will continue as manufacturing PMIs fall below 50. Risks to inflationary growth also include a renewed focus on Chinese credit easing and a global increase in capital spending, but neither is currently in sight.”

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