EUR/USD still under pressure on USD strength – Danske Bank

Morten Helt, Senior Analyst at Danske Bank, assessed the recent price developments around the pair.

Key Quotes

“EUR/USD continued its route below 1.19 yesterday and in what looked like a safe-haven move, EUR/CHF fell below 1.19 and EUR/JPY below 130 ahead of Trump’s Iran announcement”.

“While the latest bout of USD strength may be regarded a sign USD is again trading as a safe haven amid EM jitters, we maintain that the key driver of USD strength at present is fundamentally grounded in US cyclical outperformance and the associated upward pressure on US yields”.

“Even if oil prices tick higher it should not provide significant support to the cross as EUR/USD maintains a minuscule sensitivity to oil”.