EUR/USD seen extending its rangebound theme – Danske Bank

Mathias Mogesen, Analyst at Danske Bank, noted the pair remains poised for a continuation of the consolidative theme between 1.06 and 1.10 in the next months.

Key Quotes

“For USD, Friday's stronger-than-expected US employment cost index was more important than the sluggish Q1 GDP growth”.

“That said, the market will be reminded that US economic expansion has stopped accelerating when April's ISM manufacturing index is published today, which could weigh a bit on USD and keep EUR/USD in the high end of the 1.06 -1.10 range on a day that looks to be uneventful to FX markets as many markets are closed”.

“Furthermore, note that positioning data showed that CHF positioning moved to stretched short territory after the first round of French presidential election”.

“Hence, if Macron maintains the solid lead in opinion polls ahead of the second round of the election this weekend, we do not expect to see much further near-term movement in safe-haven currencies CHF and DKK”.