EUR/USD a test of 1.20 still appears elusive – Danske Bank

Senior Analyst at Danske Bank Jens Pedersen assessed the prospects for the pair in the near term.

Key Quotes

“EUR/USD saw a brief jump above 1.19 on Friday after former national security advisor Flynn said Trump directed him to the Russians”.

“We do not expect the cross to make a sustained move above 1.20 this week, however, unless the case puts further strain on the US President – Trump is in fact set for his first real political victory as the tax reform has now passed the Senate”.

“US politics near term have the potential to take USD both up and down, in our view”.

“It is a rather uneventful euro-data week ahead but the US job report on Friday could prove interesting – not least as the Fed looks increasingly vigilant of a lack of wage growth: we are looking for a pickup – if slightly below consensus – job and earnings figure alike, which could weigh slightly on EUR/USD if realized”.