An excerpt from a Danske note where the bank boosts its projection for the currency in the 1 to 3 month time horizon:
- to 1.16 from 1.15 previously
Citing:
- EU fiscal optimism
- steady EU recovery
- broad weakness in the dollar & other havens (eg. yen and Swiss franc)
- looking for USD to decline due to global recovery from coronavirus and an associated repricing of the inflation outlook
Further out Danske caution the outlook for EUR/USD is "downward sloping"
- due to issues with European productivity, EU politics and a likely negative turning point for the Chinese credit cycle when looking ahead 6-12 months
