Flash: EUR/USD upside pressure should abate - Danske Bank

FXStreet (Barcelona) - Anders Vestergård Fischer, Analyst at Danske Bank notes that the FX markets will be awaiting Yellen’s testimony this afternoon.

Key Quotes

“We expect Yellen to underline that tapering will continue despite the weaker ISM and labour market report last week. Hence, the recent upward pressure on EUR/USD should abate.”

“However, if Yellen strikes a dovish rhetoric, a new move higher in EUR/USD should be expected, not least as many short EUR/USD positions were established ahead of the ECB meeting last week.”