EUR/USD is now firmly below the 1.10 mark. Economists at Danske Bank maintain a clear sell-on-rallies bias for the cross
EUR/USD had defied the turnaround in equities
“In recent weeks, EUR/USD has defied the shift and sudden underperformance of Eurozone equities, which we otherwise deem to have been an important driver behind the EUR/USD rally since September (Eurozone equities overperforming during this period).”
“Our tactical conviction on EUR/USD is not high, but we maintain a clear sell-on-rallies bias for the cross as we still think medium-term drivers indicate that EUR/USD is overvalued (and not undervalued).”
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