Euro: Pressured as US Dollar stays firm – Danske Bank
Danske Research Team notes that EUR/USD extended its latest decline on Friday, breaking firmly below the 1.15 mark as European yields rose in a bearish steepening. They highlight that developments in the Middle East and prospects of incoming tightening from the Fed are supporting the US Dollar (USD). Their latest FX Forecast Update maintains a positive stance on USD versus EUR and other European currencies.
Dollar strength extends decline
"In the euro area, the flash consumer confidence for June is released. The survey period is likely 1-21 June so the US-Iran deal and subsequent drop in the oil price might not fully be reflected in the data."
"European yields rose across the curve in a bearish steepening of the curve as developments in the Middle East and subsequent expected talks between US-Iran over the weekend were digested alongside the prospect of incoming tightening from the Fed."
"EUR/USD extended its latest decline during Friday's session breaking firmly below the 1.15 mark."
"We stay positive on USD and negative on SEK, NOK, GBP vis-à-vis EUR."
"The rest of the week, focus will be on the June flash PMIs released for many of the big economies, with euro area, US and UK PMIs released on Tuesday. We also look out for US PCE inflation on Thursday and ECB's consumer expectations survey on Friday."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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