EUR/USD to be at 1.09 levels in 1M – Danske Bank

Research Team at Danske Bank, suggests that they are adjusting their EUR/USD forecasts in line with what they communicated before and immediately after Brexit.

Key Quotes

“We now forecast EUR/USD at 1.09 in 1M (1.11previously), 1.07(1.10) in 3M, 1.10(1.14) in 6M and 1.14(1.18) in 12M.

Short-term, we expect increased political uncertainty in the Eurozone and the prospects of further monetary easing to weigh on EUR/USD. However, medium-term we continue to expect that the undervaluation of the EUR and the large Eurozone-US current account differential will support the EUR.”