EUR/USD still eyes 1.18 in 12-month – Danske Bank

Analyst at Danske Bank Kristoffer Lomholt believes the pair could edge higher towards 1.18 in a year’s view.

Key Quotes

“We still look for some more short-term EUR/USD downside on cleaner positioning and the cyclical picture favouring the US”.

“While our 1M forecast for EUR/USD is 1.12, risks remain skewed towards a somewhat larger drop going into the final month ahead of the UK/EU referendum”. 

“Importantly, we still expect the cross to head higher towards 1.18 on a 12M horizon on flows and valuation”.