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Forex pairs in this Article » EUR/USD
FXstreet.com (Barcelona) - Danske Bank analysts note that the move higher in EUR/USD on Friday following disappointing US new home sales does not appear warranted given the otherwise improving housing market.

Key Quotes

“We would thus not be surprised to see USD strengthening somewhat if durable goods today prove healthy.”

“Importantly, speculators added significantly to long EUR positions in the week ending 20 August, almost doubling their positioning in just a week’s time and almost solely at the expense of USD, according to IMM data.”

“This underlines that bets on eurozone improvements are increasingly entrenched in FX market positioning.”

“Although we expect to see a USD rebound as the September Fed meeting approaches, today there is a risk that a hawkish Weidman may underline what Nowotny said last week, namely that ECB is not thinking about rate cuts at the moment, despite speculation that July’s forward guidance kept open the possibility of lower rates.”
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