EUR/USD still under pressure – Danske Bank

Senior Analyst at Danske Bank Mikael Milhoj noted the pair should remain under scrutiny in light of the upcoming key releases.

Key Quotes

“EUR/USD moved lower yesterday on strong US data, thus defying the somewhat strong inflation prints out of Germany”.

“Today is ‘big inflation day’, with both US and eurozone prints out: if core inflation in the eurozone comes out on the weak side (as we estimate) and US PCE come in as estimated, then we believe EUR/USD could stay under pressure in the very near term”.

“More importantly, we think the ECB will address the recent pace of EUR appreciation next week, which should put a lid on EUR/USD near term, alongside a Q4 squeeze in USD liquidity”.