EUR/USD: today's FOMC could support the decline of the pair (Danske Bank)

Danske Bank maintains a bearish bias on EUR/USD ahead of today's FOMC.

"After the significant rise of the EUR/USD last week, we are now in wait-and-see mode before today's FOMC. Risks are to the downside, in our opinion, and we believe relative rates have a role to play, especially if the Fed hints at a more hawkish pace by 2018.

However, in view of the uncertainty due to US fiscal policy (the US government should submit the key 2018 budget parameters to Congress on Thursday, the day after the FOMC), we believe the Fed could remain cautious regarding monetary policy."