USD weakness remains the prevailing theme – Danske Bank

Morten Helt, Senior Analyst at Danske Bank, noted the persistent softness around the dollar as the main driver behind the upbeat momentum in the riskier assets.

Key Quotes

“The theme of USD weakness continued on Thursday with EUR/USD and GBP/USD testing higher levels. Technically, the 1.1350-1.1450 area in EUR/USD should provide some resistance with recent highs clustering the interval”.

“The pound was supported by much stronger than expected July retail sales”.

“USD/JPY is trading around the 100 level which naturally fuels uncertainty around FX intervention by the Japanese authorities. However, intervention may be less likely now given the upcoming US presidential election. In any case, based on the experience in early 2011, it might not be successful initially”.