EUR/USD still seen in a 1.10-1.14 range – Danske Bank

Analyst at Danske Bank Kristoffer Lomholt expects the pair to remain rangebound between 1.10 and 1.14, while today’s US Retail Sales could be innocuous for USD.

Key Quotes

“In the majors, today’s US retail sales will take centre stage and be directional for USD today”.

“Our forecast of a 0.3% m/m increase in the control group is in line with consensus and thus should not trigger any significant market reaction, although it should be positive to get a confirmation that private consumption growth got off to a great start in Q3 after a very strong Q2”.

“Overall, we still expect EUR/USD to stay within the range of 1.10-1-14 in the near term, while we maintain our medium-term bullish view that EUR/USD should eventually trade higher on valuation and current account differentials”.