EUR/USD: Revising Our EUR Yield Forecasts; EUR/USD Dips To Remain Shallow & Short-Lived - Danske
Danske Research discusses the EUR outlook in light of revising higher its EUR yield and rates forecast.
"We have now pencilled in somewhat higher 10Y EUR and USD rates and yields (Germany) on a 12M horizon. We now expect the 10Y EUR swap rate to rise to 1.45% from earlier 1.20% on a 12M horizon," Danske projects.
"EUR/USD: sensitive to ECB and upside risks dominating. Any dip in EUR/USD near term set to prove shallow and shortlived; cross supported longer term by valuation and debt-flow reversal," Danske argues.
Source: Danske Bank Research