EUR/USD now looks to FOMC – Danske Bank

Analyst at Danske Bank Aila Mihr assessed the recent performance of the single currency adding that the next big risk event facing the pair will be today’s FOMC meeting.

Key Quotes

“EUR/USD bounced higher yesterday after comments by the Head of the US National Trade Council, Peter Navarro, that Germany was benefiting from a ‘grossly undervalued’ exchange rate, adding to signs that the new administration may be trying to talk its currency down”.

“The cross was up 0.9%, trading just below the 1.08 level, as some broader USD weakness both versus developed and developing countries’ currencies is seen as well”.

“However, with the upcoming FOMC meeting today, we could see the USD recover among signs in the minutes that a rate hike might come sooner than June, as we currently expect”.