EUR/USD: Danske Bank sees cross at 1.04 in near term but doesn't expect parity

The biggest risk in our view would be a scenario where the ECB, the Fed or both decide to ignore their "promises".

We are targeting 1.04 within 1 month, 1.06 within 3 months and 1.20 within 12 months. We expect the FED to raise rates in December and monetary easing by the ECB before the end of the year.

But we do not think that the pair will fall down to parity. The markets have already well integrated into pricing the upcoming monetary divergence in December. In the longer term we believe that the EUR/USD pair will gradually climb and align with medium to long-term fundamentals," says Danske Bank.