EUR/USD scope for further downside – Danske Bank

Aila Mihr, Analyst at Danske Bank, noted the pair could grind lower in the near term.

Key Quotes

“We now think EUR/USD looks increasingly vulnerable to a slide on relative growth and stretched positioning, and the rise of USD as a 'carry currency' adds a rate pick-up argument”.

“While we have our strategic view that EUR/USD will edge higher medium term on the ECB, we tactically suggest selling the pair for near-term (1-3M) drop and decent carry”.