EUR/USD: the pair could reverse on the forex during this summer (Danske Bank)

Danske Bank expects the decline to continue over the summer.

"EUR/USD fell below 1.12 after Thursday's ECB meeting, and again after the first results of the UK elections.

An ECB rate hike must be in order for the EUR/USD to rise sharply, according to our analysts. This could happen towards the end of the second half of the year.

In the short term, speculative positioning has become long, overall, making the pair vulnerable to further declines.

On the other hand, the Fed could confirm its willingness to continue its monetary normalisation policy and support USD during the summer."