Further downside in EUR/USD hinges on US politics – Danske Bank

The pair’s price action in the near term keeps looking to headlines from the US political scenario, particularly regarding the tax reform plans, noted Allan von Mehren, Chief Analyst at Danske Bank.

Key Quotes

“EUR/USD trading sideways yesterday with little impulses to move the cross much away from the 1.16 mark”.

“Near term, the USD support from relative rates is hard to dismiss - both from short- and long-end US rates – but in our view we need to see decent upside surprises from a US tax reform in order to send the cross much below 1.15, where good technical support remains in place”.