EUR/USD: the euro should keep consolidating for the time being (Danske Bank)

Danske Bank believes that the EUR/USD should continue its consolidation around 1.23 in the coming month.

"In our base scenario where the EUR/USD barrier is limited to a very specific zone, the pair should continue to consolidate at this time.

Our medium-term scenario remains unchanged: a reversal of capital from USD to EUR is emerging with the relative attractiveness of EU assets vs. US assets increasing.

We therefore continue to forecast the EUR/USD at 1.23 in 3 months, 1.25 in 6 months and 1.28 in 12 months.

In 1 month, the EUR/USD could end up in the 1.23 zone, with a range of 1.21-1.26 still in place."