EUR/USD: the euro could still once again test the 1.15 threshhold (Danske Bank)

Danske Bank believes that the EUR/USD could still return to the 1.15 threshold in the short term.

"Beyond developments in the trade war, the EUR/USD will also depend on this week's inflation data.

Our quantitative models of business cycles continue to point to a slowdown in the euro zone, while the US outlook looks more positive. This points to a further cyclical decline of the EUR/USD.

We continue to foresee the EUR/USD in a range, but with the risks pointing towards a new test of 1.15 in the short term."