EUR/USD keeps the 1.21/1.26 range so far – Danske Bank

Allan von Mehren, Chief Analyst at Danske Bank, believes there are no catalysts for the pair to break the current 1.21-1.26 range in the next weeks.

Key Quotes

“It is noteworthy here that the pair for once is sent lower by souring risk sentiment, as we have recently seen that the long-standing correlation between the USD and equities is breaking down”.

“This may be a first sign that when US president Trump is not (directly) the driver of the FX market, the USD positives that are indeed out there (notably a strong US cyclical stance and rising US yields) and have been neglected for a while could come to the fore”.

“That said, we still do not see a trigger for EUR/USD to break out of the 1.21- 1.26 range”.