EUR/USD looks to USD and ECB – Danske Bank

Mikael Milhoj, Senior Analyst at Danske Bank, gave his views on the recent developments around the greenback and prospects on EUR/USD.

Key Quotes

“Focus for USD continues to be on US protectionist discussions ahead of the ECB tomorrow, where we see potential for EUR support from a removal of QE flexibility. EUR/USD rose slightly further on the back of the Gary Cohn resignation after the sharper increase yesterday on the back of the North Korea story”.

“Normally, weaker global risk sentiment would cause an appreciation of USD but in this case with a more inward looking US, it is USD negative”.