EUR/USD upside limited – Danske Bank

Analyst at Danske Bank Mathias Mogensen sees gains in the pair to remain limited.

Key Quotes

“EUR/USD dipped on Thursday as the cross continues to respect the 1.11-1.15 range, which is likely to be in place near term”.

“We estimate the market is pricing in a 25bp Fed rate hike in July with a 23% probability and a hike in September with a 46% probability”.

“A full 25bp hike is only priced in by April 2017. The Fed has been repriced substantially since last Friday and we think there is limited EUR/USD upside from relative interest rates”.