EUR/USD edged greater above 1.13 because the USD continues to melt in an in any other case comparatively quiet week for G10 FX, Danske Financial institution’s FX analysts report.
Fed holds regular, markets count on September lower
“Stories of FX discussions on the G7 assembly in Canada have additional bolstered the market’s underlying bias towards including to USD shorts, amid ongoing hypothesis that the US administration is actively pursuing a weaker dollar.”
“Latest Fed commentary stays pretty balanced, with most members indicating the Fed is in a ‘good place,’ and Powell’s wait-and-see stance seems to have been broadly accepted by markets. Based mostly on present pricing, a price lower inside the subsequent two conferences appears unlikely barring any vital surprises.”
“We see restricted FX affect from incremental coverage repricing at this stage, with worth motion extra prone to be pushed by headlines associated to tariffs and FX coverage, Treasury market dynamics, and incoming exhausting US information — with the following key releases due in early June. Tactically, we proceed to favour shopping for EUR/USD on dips.”
