EUR/USD rangebound, still seen closer to 1.15 – Danske Bank

In light of the recent performance, spot is expected to navigate in the lower bound of the 1.21/1.15 range for the time being, suggested Jens Sorensen, Senior Analyst at Danske Bank.

Key Quotes

“EUR/USD ended the day lower on Friday after a rather volatile session, where the escalation of the trade war between the US and China took centre stage after the Chinese authorities on Friday pledged to impose tariffs on USD60bn of imports from the US in retaliation to US trade restrictions”.

“On the data side, a decent – but below consensus – labour market report and US ISM non-manufacturing were the catalyst behind a couple of short-lived bounces in the cross. While below consensus, the US labour market report still supports the case for two more hikes from the Fed this year”.

“We still see the EUR/USD as range bound and look for the cross to remain in the low end of 1.15-1.21 near term”.