EUR/USD on a stronger footing overall – Danske Bank

Analysts at Danske Bank note that EUR/USD continued its rising streak hitting a new cycle high yesterday when breaking 1.2050.

Key Quotes

“A significant tightening in basis (which has moved closely with the spot in recent weeks) as the turn effect has been taken out, comments from ECBs Couere regarding an end to QE later this year, and a rising oil price have been key in our view. Even with positioning now more neutral, we still look for some USD strength on a 1-3M horizon on repatriation flows and a relative strong cyclical US position.”