EUR/USD could slip back to 1.10 and below – Danske Bank

Senior Analyst at Danske Bank Jens Pedersen sees spot grinding lower towards the 1.100 handle and possibly below in the next weeks.

Key Quotes

“In the majors, the USD saw broad-based support yesterday as the market stuck with its hawkish interpretation of the Fed meeting on Wednesday, e.g. 2Y USD real rates inched higher yesterday”.

“EUR/USD made a firm break below 1.12 and we remain tactically short the pair looking for a further move below 1.10 in the near term. The market will look for confirmation of the hawkish tone from Yellen on Wednesday, when Fed’s Kaplan speaks late today”.