Danske Bank believes that EUR/USD should stay heavy on the Forex market during the coming months.
«EUR/USD dropped yesterday after the Minutes of the ECB, which showed that the Council has explicitly expressed concern about the rise of the Euro. This clearly illustrates that the ECB is not fully ready to leave the Euro too appreciate.
This coupled with the Minutes of the Fed which showed that the Fed becomes less confident on inflation, shows that the discussions of standardization earlier this summer were down due to the recent movements of the Forex.
We continue to believe that EUR/USD is expected to remain in the range 1.15-1.20 at a horizon of 1-3 months before a rise above 1.20 in 2018. «