EUR/USD in the short term, over 1.10 expected — Danske Bank

FXStreet — The currency pair is likely to rise to 3-month view on the psychologically important mark of 1,1000, expected Pernille Henneberg, chief analyst at the Danish Danske Bank.

Important Quotes:

The currency pair EUR/USD is on the retreat. This is due to a re-Pricing in a hawkisheren Federal Reserve. Now, the common currency traded back to the level after the first election round of the French presidential election.

While the European Central Bank remains loose, to play Mario Draghi’s yesterday’s comments that the extreme risks have gone up in smoke. Thus, the possibility that the ECB is more optimistic on the short term. Although it is still too early for a call for a change in the monetary policy, we would like to stressed that the risks for the currency pair is provisionally on the upper side due to the unhealthy under-valuation of the Euro. Of course, the Federal Reserve (Fed) could support the USD even further, if you increase interest rates as planned a few more times this year, but that’s not likely to affect the EUR/USD much.

After the political risks have now been cleared out of the way, could catapult the ECB, the GBP/USD over three months, over the round mark of 1.10. However, we need as a catalyst for a clearer picture of the ECB to loose slowly moving away from the ultra’s monetary policy plans.

** FXStreet News Editorial, FXStreet**

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