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EUR/USD: Why Gravity Has Yet To Kick In

Published 06/17/2015, 08:24 AM
Updated 05/14/2017, 06:45 AM
EUR/USD
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Fundamentally we look for EUR/USD to head lower&

The US growth outlook has improved markedly in recent weeks (cf. surprise indices)

Fed on track for a September hike and fixed income markets have yet to price this and the following hiking cycle (watch out for hawkish Yellen tonight despite softer dots)

For our fundamental story, see FX Forecast Update - Final stage of USD rocket

We are short EUR/USD in our Danske Bank FX Trading Portfolio, see Danske Bank FX Trading Portfolio: Sell EUR/USD


... but gravity has yet to kick in for the cross

European bond market sell-off and - crucially - ECB acceptance of this

Hedging flows reversing

Grexit not the EUR disaster it would have been in 2011-12

To Read the Entire Report Please Click on the pdf File Below

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