EUR/USD further upside not ruled out – Danske Bank

Chief Analyst at Danske Bank Valtteri Ahti does not rule out extra gains in the pair as markets continue to assess the probable ECB ‘normalization’ of the monetary conditions.

Key Quotes

“EUR crosses generally bid yesterday after the ECB sources story that focus is shifting to controlling rate expectations as QE is set to end, and that the ECB is satisfied with current market pricing”.

“The latter is a hawkish signal, in our view, given what we see as somewhat aggressive pricing of a first hike at present”.

“We would not be surprised to see the EUR rally extend in coming days, albeit it is likely to require more backing from either side for EUR/USD to break the 1.2555 support level (16 February high)”.