USD poised for further gains – Danske Bank

Sverre Holbek, Senior Analyst at Danske Bank, sees the greenback gathering further steam in the next weeks.

Key Quotes

“EUR/USD was pushed further down Friday night by Federal Reserve Chair Janet

Yellen’s comments that higher interest rates in the coming months look ‘appropriate’.

“As argued, US growth seems to be back on track following a couple of weak quarters and we see potential for further repricing at the short end of the US yield”.

“We expect the USD to rally further in the near term particularly versus European currencies and the JPY supported by higher US rates and a fairly light USD positioning”.

“Moreover, greater sensitivity to rates and Brexit risks should drive a lower EUR/USD near term”.