EUR/USD: More greenback strength – Danske Bank

Analysts at Danske Bank expect more US dollar strength in the coming weeks, therefore, they think additional USD longs have potential. 

Key quotes

“We still think the all overarching theme is the strengthening of the broad USD, its ramifications for other asset classes and the subsequent spill-over effects to the rest of G10 and EM-majors.” 

“Our predisposition is for more USD strength and it is especially noteworthy how IMM data do not suggest that USD positioning is particularly stretched long – if stretched at all.”

“Leveraged accounts have heavily added short EUR/USD positions in recent weeks but we believe in a potential for additional USD longs and a continuation of the greenback rally.”