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#1 25-01-2019 12:09:54

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From: Paris - France
Registered: 21-12-2009
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EUR/USD: the euro is in "rodeo" mode on the forex (Danske Bank)

EUR/USD: the euro is in "rodeo" mode on the forex (Danske Bank)

Danske Bank explains that the EUR/USD had a rollercoaster ride yesterday on weak PMIs, the ECB meeting and negative comments by US Secretary of Commerce Ross on the prospect of trade deals with China.

"We still think that the first rate hike is a little too far/fragile for the currency markets to show a significant rise in the euro, but as the first semester progresses, we expect the next step of a EUR/USD rebound to be reached via a trade agreement between the two countries.

The appreciation of the associated CNY would also help to prevent the effective EUR from becoming too strong, which would create options for the ECB. For the EUR/USD to reach the 1.20 high, as its valuation warrants, we need to move closer to the confirmation that the ECB intends to change rates - and this is unlikely to happen before the second semester, but we are progressing gradually in this direction.

"Anything worth having is worth going for - all the way." - J.R. Ewing



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