EUR/USD still seen dropping to sub-1.15 levels – Danske Bank

Chief Strategist at Danske Bank Valtteri Ahti still sees EUR/USD dropping below the 1.1500 handle in the near term.

Key Quotes

“USD strength is again omnipresent amid the renewed concerns over EM with South Africa also having fallen victim to souring sentiment”.

“That said, the surprise rise in US ISM Manufacturing yesterday clearly also helped sustain optimism regarding US activity and the Fed staying on course”.

“The US again rattling the sabre on trade should also prove helpful in fuelling a dip below 1.15 near term - even if the Italian government now seems willing to stay below the key 3% level for next year’s budget deficit”.