EUR/USD: Still capped in range – Danske Bank

Economists at Danske Bank still see EUR/USD as essentially capped within its recent range and keep the forecast unchanged at 1.09 in 1-3M and 1.07 in 6-12M.

Key quotes

“The potential for a stronger EUR/USD is related to global reflationary trends and such shock is indeed a notable but very unlikely upside risk in EUR/USD.”

“We keep our forecast unchanged at 1.09 as we see the EUR as embedding enough institutional risk premium, at least for now.  However, we stick to our long-term forecast at 1.07.”