Dips in EUR/USD are buying opportunities – Danske Bank

Jens Pedersen, Senior Analyst at Danske Bank, recommended buying the pair on occasional drops.

Key Quotes

“The strong US job report sent EUR/USD towards 1.24 on Friday, but the cross recovered decently in late trading – an illustration that good US news is currently seen as a global positive and/or not something that will cause the Fed to tighten much more/faster”.

“At a time when the euro is very sensitive to ECB communication it is worth watching out for comments e.g. from Draghi today on the currency, which is now in effective terms back at levels prior to negative rates and QE. We see EUR/USD consolidating around the 1.25 level for now but maintain the pair is a buy on dips”.