Danske Research Team notes that EUR/USD extended its latest decline on Friday, breaking firmly below the 1.15 mark as European yields rose in a bearish steepening. They highlight that developments in the Middle East and prospects of incoming tightening from the Fed are supporting the US Dollar (USD). Their latest FX Forecast Update maintains a positive stance on USD versus EUR and other European currencies.
Dollar strength extends decline
“In the euro area, the flash consumer confidence for June is released. The survey period is likely 1-21 June so the US-Iran deal and subsequent drop in the oil price might not fully be reflected in the data.”
“European yields rose across the curve in a bearish steepening of the curve as developments in the Middle East and subsequent expected talks between US-Iran over the weekend were digested alongside the prospect of incoming tightening from the…
