EUR/USD now looks to US CPI – Danske Bank

Chief Analyst at Danske Bank Christin Tuxen sees the pair’s next relevant move could come from Friday’s release of US CPI.

Key Quotes

“The recent EUR/USD uptick is losing momentum as second-tier US data such as yesterday’s JOLTS jobs data spurs significant moves in the USD”.

“That said, it will require a strong US CPI print this week for EUR/USD to drop much further. Remember the 'Sintra accord': central banks appear to have 'agreed' to allow for broader USD weakness as they more or less jointly embark on the path to 'normalisation'.

“Near term, should the tensions around North Korea continue, safe haven moves will be the focal point in FX markets, benefitting CHF, possibly JPY but not necessarily USD”.