8 May 2015
USD focused on Payrolls, EUR/USD at 1.02 in 6m – Danske Bank
FXStreet (Edinburgh) - Senior Analyst Jens Pedersen at Danske Bank assessed the near term scenarios for the pair.
Key Quotes
“Finally, the USD will, as always, be alert to the outcome of the US job report for April: if payrolls come in below the 200K level (contrary to what we expect), the current upward momentum in EUR/USD could gain further traction and we would likely see a test of 1.15”.
“We have adjusted our EUR/USD forecasts higher but continue to expect a 'V' profile, where we maintain that the cross will be in for another leg lower ahead of a first Fed hike in September”.
“We now see EUR/USD bottom at 1.02 (previously 0.99) on a 6M horizon but still forecast a rebound towards 1.08 in 12M”.
Key Quotes
“Finally, the USD will, as always, be alert to the outcome of the US job report for April: if payrolls come in below the 200K level (contrary to what we expect), the current upward momentum in EUR/USD could gain further traction and we would likely see a test of 1.15”.
“We have adjusted our EUR/USD forecasts higher but continue to expect a 'V' profile, where we maintain that the cross will be in for another leg lower ahead of a first Fed hike in September”.
“We now see EUR/USD bottom at 1.02 (previously 0.99) on a 6M horizon but still forecast a rebound towards 1.08 in 12M”.