EUR looks constructive in the longer run – Danske Bank

Following yesterday’s publication of the ECB minutes, Chief Analyst at Danske Bank Jakob Christensen expects the single currency to remain well supported in the longer term.

Key Quotes

“Alongside down pressure on US yields, ECB minutes helped EUR/USD to end yesterday on a positive note in emphasising the continued push to alter guidance in a more hawkish direction”.

“The January accounts also contained an indirect reference to the US administration’s USD comments around the time of the meeting, but this should in our view merely be seen as a sign that the ECB is annoyed by the political interference with FX rather than it being an obstacle for ‘normalisation’ – and gradual EUR strength with it – to move on”.