- Analytics
- News and Tools
- Market News
- EUR/USD could rise further in the very near term on soft NFP – Danske Bank
EUR/USD could rise further in the very near term on soft NFP – Danske Bank
Economists at Danske Bank discuss the possibility of a short-term rise in EUR/USD due to USD weakness resulting from softer US data.
EUR/USD to trend lower over the year
If our expectation of a softer US labour market holds true, we could see EUR/USD rise further in the very near term. However, over the year, we still expect EUR/USD to trend lower.
We believe the US economy is in a stronger position relative to the Euro Area, based on factors such as relative terms of trade, real rates, and relative unit labour costs. There are also signs that underlying inflation appears more persistent in the US compared with the euro area, which, all else being equal, should support the USD.
A strong USD, coupled with tighter financial conditions, is a necessary condition for the Fed to sustainably achieve its inflation target of 2%.
We forecast EUR/USD to reach 1.0500/1.0400 within a 6/12M horizon.
© 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
