EUR/USD guided by politics – Danske Bank

After the SPD agreed to join Merkel’s coalition government, focus for EUR crosses will be on digesting the Italian election outcome today: the muddy outcome should keep EUR/USD in its recent range, according to Senior Analyst, Kristoffer Kjær Lomholt at Danske Bank.

Key Quotes

“Otherwise, key focus this week will be on the ECB: if QE flexibility is removed as we call for, then some support for the euro could be in store, but we emphasise that we do not foresee a sustained break of the 1.21-1.26 range in EUR/USD yet.”