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Home » Currencies » Market Talk » DANSKE BANK : sees EUR/USD downside risks from ECB

DANSKE BANK : sees EUR/USD downside risks from ECB

With a exam of the 1.30 expanse likely, according to Danske. Danske says piece a refi-rate cutting can't last ruled out, it's the deposit charge per unit of measurement that matters for the FX marketplace position every minute it's this that determines the grade of EONIA, as well as Danske says ECB is a long agency from going negative. Coupled amongst stretched EUR brusk positioning , Danske says overall scenario is EUR positive. However amongst the longer-end of the EONIA swaps having sold off inwards May, at that spot could last room for the FX-sensitive piece of job of the flexure to deed lower. That, along amongst Draghi probable taking a soft approach as well as offering no grand ABS programme should force EUR/USD merchandise lower inwards answer to the meeting. EUR/USD at 1.3126.
(gary.stride@dowjones.com)
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