EUR/USD: Danske Bank increases its medium and long term forecasts but remains bearish in the short term

Danske Bank is revising its forecasts for the EUR/USD to higher levels in the medium and long term, but remains bearish in the short term:

"In general, the euro remains supported and the EUR/USD is evolving above 1.10. We believe that the next big move to be monitored on the EUR/USD is a rise, probably fueled by a changes in ECB policy. We have increased our 3 to 12-month forecasts to 1.09 within 3 months (1.06 previously), 1.11 within 6 months (1.09 previously) and 1.16 within 12 months (1.17 previously).

In the short term, however, we believe that the USD will rise slightly with a plan to reduce the current account and an increase in Fed rates in July.

We target a EUR/USD at 1.07 within 1 month."