What is the forecast for EUR/USD over the medium-term?
Here is their view, courtesy of eFXdata:
Danske Research likes staying short EUR/USD over the medium-term.
“Dollar strengthened against EM and EUR yesterday. In our view, these moves are a continuation of the FX theme(s) we have been writing about recently as we see support being increased to broad USD here in 2021, unlike 2020. Stress in the Turkish Lira is part of this picture. In fact, liquidity conditions increasingly appear to be tightening via ECB, Fed, and PBoC,” Danske notes.
“We continue to like trades which are short 2020-momentum & long FX value such as short EUR/USD and other broad dollar longs,” Dasnke adds.
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