EUR/USD further rangebound likely near term – Danske Bank

Senior Analyst at Danske Bank Kristoffer Lomholt believes the pair remains poised to extend the 1.21-1.26 range in the short term horizon.

Key Quotes

“After the SPD agreed to join Merkel’s coalition government, focus for EUR crosses will be on digesting the Italian election outcome today: the muddy outcome should keep EUR/USD in its recent range”.

“Otherwise, key focus this week will be on the ECB: if QE flexibility is removed as we call for, then some support for the euro could be in store, but we emphasise that we do not foresee a sustained break of the 1.21-1.26 range in EUR/USD yet”.