The bid tone around USD is set to persist – Danske Bank

The greenback’s solid performance is expected to continue for the time being, suggested Chief Strategist at Danske Bank Valtteri Ahti.

Key Quotes

“USD strength still dominates with US yields on the rise yet again. Indeed, it is noteworthy that USD has recently gained almost irrespective of equity moves, cementing that the key cause of USD support is recent US economic outperformance – stay tuned for today’s ISM”.

“Even though EUR/USD was initially rejected just above the 2018 low (1.1301), we maintain that a break is likely as USD momentum is significant at present; thereafter good support at 1.1220 (26-Jul-17 high)”.