EUR/USD: bullish momentum fading – Danske Bank

Chief Analyst at Danske Bank Christin Tuxen assessed the recent price action and prospects for the pair in the near term.

Key Quotes

“The difficult coalition talks ahead in Germany following the election have entered as another factor, driving EUR/USD putting a temporary lid on bullish EUR momentum”.

“We stress that this should only be temporary and focus could return to relative monetary policy already today with the Fed’s Janet Yellen and Loretta Mester and the ECB’s Peter Praet set to speak”.

“On balance, relative monetary policy has been negative for EUR/USD over the past week and as noted yesterday, we do not look for a reversal of this today”.