- Analytics
- News and Tools
- Market News
- EUR/USD will find difficult to persistently leave the gravity force of parity – Danske Bank
EUR/USD will find difficult to persistently leave the gravity force of parity – Danske Bank
EUR/USD holds above the 1.06 level. Nonetheless, economists at Danske Bank believe that the pair will struggle to leave the gravity force of parity.
Multiple potential EUR/USD drivers
“Looking ahead it is a tough balancing act for FX markets. On the one hand, higher EUR rates is a clear boost to the carry-attractiveness of the EUR. On the other hand, higher real rates is set to hit Eurozone growth, which is already suffering from the last year’s negative terms-of-trade shock. This will hurt the investment case of Eurozone assets making the EUR look less attractive compared to peers.”
“In the near term, our bearish case for EUR/USD is under pressure. However, we still think EUR/USD is a sell-on-rallies rather than a buy-on-dips.”
“Our adjusted MEVA-model estimates has EUR/USD close to 0.90 as fair (based on terms of trade, unit labour costs and real rates) and unless global growth prospects accelerate next year we think it will remain difficult for EUR/USD to persistently leave the gravity force of parity.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
