EUR/USD: Range bound – Danske Bank

Kristoffer Kjær Lomholt, senior analyst at Danske Bank, points out that the EUR/USD pair has traded in a tight range of around 1.1200-1.1250 this week, as the bout of global data releases and news has not offered much argument of a change in either direction.

Key Quotes

“On the one hand, better data out of China and hints of a trade deal has supported EUR/USD; on the other hand, news that Italy’s budget deficit will be higher this year along with a pickup in short-term US rates has countered this effect.”

“If we are right in our call for another solid US labour market report today, the market will likely be inclined to further price out Fed cuts, which should give some short-term support to USD.”