EUR/USD: buy the dips to 1.2100 – Danske Bank

Occasional dips in spot towards the 1.2100 area are regarded as buying opportunities, recommended Allan von Mehren, Chief Analyst at Danske Bank.

Key Quotes

“EUR/USD remained under pressure yesterday as markets digested Powell’s hawkish tone in the House hearing, and while there is a risk this move could be sustained today around the Senate hearing, we maintain that for EUR/USD the 2017 high of 1.2092 should provide good support”.

“Indeed, if the cross is moving close to 1.21 it would in our view be a buying opportunity: the risk of US inflation outperformance favours a weaker USD still as long as Powell makes no revolutions at the Fed”.