FXStreet (Edinburgh) - According to Pernille Nielsen, Senior Analyst at Danske Bank, the bounce in the pair would be limited.
“In the majors, focus on the chances of further ECB easing ahead of the central bank meeting on 4 September”.
“We see the balance of risks skewed towards a bounce in EUR/USD around the meeting, as Draghi is unlikely to ease further and the market is heavy short EUR”.
“However, we believe that any bounce will be short-lived, as the market will be focusing on that the ECB will have to deliver more”.
“We have lowered our EUR/USD forecasts, expecting it to reach 1.30 in 1M, 1.27 in 3M and 1.26 in 6M”.