EUR/USD still looks to test 1.1300 – Danske Bank

Senior Economist Vladimir Miklashevsky assessed the prospects for the single currency following the ECB meeting.

Key Quotes

“Even if the ECB refrained from introducing downside growth risks and maintained its relatively upbeat stance on inflation (both possible sources of EUR support), the EUR reaction was minimal and any initial support quickly faded".

"We still see EUR/USD heading for a test of the 2018 lows (support at 1.1301, 15-Aug low) and more broadly to be range bound around 1.15 ahead of year-end”.