EUR/USD attention to the 1.2015 level – Danske Bank

According to Kristoffer Lomholt, Senior Analyst at Danske Bank, the pair has now the 1.2015 level on the crosshairs.

Key Quotes

“EUR/USD is still hovering around the 1.21 mark after German inflation came out slightly on the weak side and US PCE inflation broadly as expected. Today, focus on the US ISM manufacturing where the question seems to be more by how much – rather than if – this will drop from currently elevated levels: in our view, we need to see a significant drop, say to the 57 area, for this to stall the current USD support”.

“Also, watch out for the quarterly announcement of US Treasury auctions tomorrow: if more longer-dated issues are in store, it could lure foreign investors into US bonds and provide USD support”.

“For EUR/USD, keep an eye on the 200D MA of 1.2015: a break could open for downside below 1.20”.