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EUR/USD to consolidate in the 1.08-1.09 range in the near term – Danske Bank

EUR/USD fell below 1.09 yesterday, Danske Bank's FX analyst Jens Nærvig Pedersen reports. 

EUR/USD struggles to gain upside traction

"Despite the FOMC's dovish stance, which has pressured US yields lower, and President Trump's comments advocating rate cuts, EUR/USD has struggled to gain upside traction. Instead, the pair has steadily declined, with the USD broadly strengthening across G10 yesterday, likely driven by risk-off sentiment." 

"No clear catalysts have emerged, as jobless claims remain relatively stable and the Philadelphia Fed business outlook slightly exceeded expectations. The risk of further EUR/USD decline is reflected in one-week risk reversals falling to 42bp in favour of puts over calls - the most bearish sentiment since the beginning of March." 

"We still expect EUR/USD to consolidate in the 1.08-1.09 range in the near term."

EUR/USD drops as Fed sees no rush for monetary policy adjustments

EUR/USD trades lower to near the 10-day low of 1.0815 in Friday’s European session.
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Russia Interest Rate Decision meets forecasts (21%)

Russia Interest Rate Decision meets forecasts (21%)
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