Bearish trend intact around EUR/USD – Danske Bank

FXStreet (Edinburgh) - Chief Analyst at Danske Bank Kasper Kirkegaard remarked the negative perspective for the pair in the medium to long terms.

Key Quotes

“In the global FX market EUR/USD has stabilised around the 1.11 level following Friday’s decline on the strong US labour market report”.

“As such, we expect US data to improve in the coming months supporting the case for higher US interest rates and a lower EUR/USD. We still target the cross at 1.02 in 6M”.

“This week’s key US event will be the May retail sales report on Thursday where we have an above-consensus estimate of 1.4% m/m increase in overall retail sales. If we are right this should confirm that the US GDP will increase in Q2 and should send EUR/USD lower”.

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