EUR/USD poised for further pullbacks – Danske Bank

Senior Analyst at Danske Bank Mikael Milhoj sees the pair approaching the 1.04 area within a month’s view.

Key Quotes

“EUR tumbled on Monday after former French Prime Minister Alain Juppé ‘once and for all’ ruled out standing in France's presidential elections as a possible replacement for the Republican candidate Francois Fillon, who investors saw as increasing the likelihood of a Le Pen win”.

“EUR/USD took a hit after the announcement, falling 0.4% from a two-week high of 1.0636 to 1.0577, before recovering somewhat in later trading”.

“Political risk is likely to continue to weigh on the cross near term and with a Fed March rate hike now widely expected by markets, relative rates should continue to remain supportive for a lower EUR/USD in the short term. We target the cross at 1.04 in 1M and 1.05 in 3M”.