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Forex pairs in this Article » EUR/USD (Edinburgh) - According to Senior Analyst at Danske Bank Christin Tuxen, the recent hawkish tone from the ECB leaves the door open for further upside towards year-end.

Key Quotes

“We now expect to see US data and Fed as the key drivers of EUR/USD ahead of year end as the ECB will likely be considered sidelined until they, in our view, will be forced to react to weaker-than-expected inflation figures after New Year”.

“We emphasise that if our economists are right in projecting a euro-zone disinflation surprise to be delivered in January and if the ECB reacts to this with a deposit cut (to negative territory)… EUR will most certainly suffer as this would have a noticeable impact on EONIA rates and mark a significant change in stance with rates no longer mentally capped at the zero level”.
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