EUR/USD: the euro remains attentive of Italy and may drop in the short term on the forex (Danske Bank)

Danske Bank notes that the EUR/USD may drop below 1.15 in the short term.

"The EUR is now awaiting more details on the Italian budget as well as the EU and the rating agencies' responses, and there is a clear risk that Italy will continue to weigh down on the EUR in the near term.

In addition to the USD's rise in terms of carry trade, we expect a test by the EUR/USD of the low end of the recent range and a decline below 1.15 within a 1-month timeframe."