EUR/USD topside is muted by politics and macro. The pair is set to remain in the 1.15-1.19 interval and economists at Danske Bank still forecast euro/dollar at 1.17 on a one-month view. Brexit, US election and the EU budget may culminate in December to move the forecsat to 1.20.
“EUR/USD topside risk is fading as markets have downgraded their expectations about the European recovery. Spot has shifted from 1.20 to 1.17, European equities are moving sideways and short-term market rates have moved below ECB’s deposit rate. This is in line with our one-month forecast of 1.17 and we expect range trading to continue at 1.15-1.19.”


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