EUR/USD comfortable within 1.06/1.10 – Danske Bank

Senior Analyst at Danske Bank Jens Pedersen sees the pair navigating within the 1.06/1.10 range for the time being.

Key Quotes

“For the majors, it is wait-and-see ahead of the FOMC meeting on Wednesday and the US jobs report on Friday. Recent key figure releases have pointed to somewhat slower growth and inflation in the US economy following the March Federal Reserve rate hike”.

“If the Fed comments on this on Wednesday and in subsequent speeches, it is likely to be interpreted as dovish by the market and weigh somewhat on USD. However, that may be balanced by comments about the looming decision to start reducing the balance sheet, which is positive for USD, as it would lead to tighter USD liquidity”.

“In the grand scheme of things, with Macron still leading comfortably in the opinion polls ahead of the second round of the election this weekend, and the Fed being unlikely to make significant changes to its policy stance, we look for EUR/USD to stay range bound in the 1.06-1.10 range”.