EUR/USD caught around 1.13 before rising to 1.25 in 12M - Danske Bank

Analysts at Danske Bank, continue to see the EUR/USD pair caught around 1.13 in the near-term and expect it to move to 1.25 in a 12M period. 

Key Quotes: 

“Although the ECB has now formally ended its asset purchase programme, the December meeting made it clear that rate hikes are not imminent. Meanwhile, the Fed looks determined to get to ‘neutral’ on rates, which following the recent softer pricing of its cycle, leaves risks titled towards continued carry and cyclical support for the USD.”

“We maintain the view that EUR/USD is caught in a range of around 1.13 near term, while we still believe ECB ‘normalisation’ and valuation are set to support the cross on a 6-12M horizon. We maintain our forecast profile and thus continue to see EUR/USD at 1.13 in 1M and 3M, 1.18 in 6M, and 1.25 in 12M.”