EUR/USD: Trading as a credit bond – Danske Bank

EUR/USD has broken above 1.10 and in the short run it may trade in the 1.10-1.12 range, according to analysts at Danske Bank.

Key quotes

“We continue to see coronavirus numbers peaking over the next few weeks, financial stress is coming down with the economic help from global fiscal policy.” 

“EUR/USD trades as a credit bond, so good news is good news for EUR and bad news, irrespective of the country origin, is bad news for EUR. 

“Looking ahead to H2, we stick to our call for 1.07.”