EUR/USD still a ‘buy on dips’ – Danske Bank

Analyst at Danske Bank Mathias Mogensen noted that occasional drops in the pair could represent buying opportunities.

Key Quotes

“EUR/USD was under some slight down pressure yesterday, breaking below 1.24 as focus is centring on the continued rise in US 10Y yield”.

“Today’s German inflation figures will set the scene for the euro figures tomorrow and remain key in determining the speed with which the ECB is able to move towards the exit”.

“But, also watch out for Trump’s state of the union address today as this may include more on US trade measures. Notwithstanding, a new trading range has yet to be established for EUR/USD but the cross remains a buy on dips, in our view”.