Forex Flash: Further upside is likely in EUR – Danske Bank
FXstreet.com (Barcelona) - The shared currency is trading in the mid 1.3400 on Monday, extending its decline from Friday's tops at 1.3480, as markets shift their attention to today's US docket, where the Durable Goods Orders and Pending Home Sales would be in the limelight.
In the view of Frank Hansen, Senior Economist at Danske Bank, "Support factors for the euro have lined up in recent weeks: i) higher money market rates, ii) sustained spread tightening in the periphery and iii) positive data surprises (economic surprise indices for the euro zone have been shooting higher). Price momentum has now become somewhat stretched, increasing the risk of a correction but fundamentally there should be more upside potential".
In the view of Frank Hansen, Senior Economist at Danske Bank, "Support factors for the euro have lined up in recent weeks: i) higher money market rates, ii) sustained spread tightening in the periphery and iii) positive data surprises (economic surprise indices for the euro zone have been shooting higher). Price momentum has now become somewhat stretched, increasing the risk of a correction but fundamentally there should be more upside potential".
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