EUR/USD: the euro could remain lifeless on the forex until the next speeches by Draghi (Danske Bank)

Danske Bank believes that the hedging of long positions is behind the decline of the EUR/USD, and that a bullish recovery will take place a little later.

"On the forex, attention is focused on North Korea, with the traditional safe havens of JPY and CHF benefiting from the current situation.

The EUR/USD's momentum continues to weaken, which can partly be explained by the risks in North Korea.

However, the recent fall of the EUR/USD is mainly be explained by the hedges of long positions, with an improvement in US data and the expectations of a dovish Draghi in Jackson Hole this month and at the ECB meeting in September.

For the record, our 1-month EUR/USD forecast stands at 1.17, before a bullish recovery surfaces later."