EUR/USD under pressure on USD-buying – Danske Bank

Christin Tuxen, Chief Analyst at Danske Bank, noted the pair remains under pressure in response to a better tone in the greenback.

Key Quotes

“EUR/USD broke below the 1.1740 mark yesterday as strong US data weighed and Trump unveiled his tax reform proposal which notably allows companies a one off tax repatriation rebate”.

“We stress that the vulnerability of the cross to USD-positive news could fade somewhat now as some EUR/USD longs have now likely been wiped out. Indeed, we see only limited potential for the cross to head lower from here and it is likely to require downward inflation surprises in, e.g. Germany today to send the cross below 1.17”.