EUR/USD seen sidelined ahead of FOMC – Danske Bank

Chief Analyst Jakob Christensen at Danske Bank sees the pair in a consolidative range at least until the FOMC meeting later this month.

Key Quotes

“EUR/USD strengthened briefly as expected on Thursday following the ECB meeting”.

“The ECB kept its powder dry and still intends to end its QE purchases in March 2017. We expect the ECB to announce an extension of QE in October or December by six months to September 2017”.

“However, that will not have much impact on the EUR, as interest rates are unlikely to be cut further”.

“The range in EUR/USD is becoming increasingly tight and this trend could continue, in our view, until the FOMC meeting on 21 September”.