EUR/USD faces downside risks on Powell – Danske Bank

Jakob Christensen, Chief Analyst at Danske Bank, noted the pair will stay vigilant on the upcoming Powell testimony (Tuesday).

Key Quotes

“EUR/USD remains steady around the 1.23 mark but new Fed Chair Powell’s testimony on Tuesday could be key in determining whether the recent market reluctance to price the Fed much more aggressively despite inflationary impulses is warranted or not; if Powell comes out hawkish, the potential for USD downside would be non-negligible”.

“Possible downside EUR risks loom this weekend with the general election in Italy and the SPD vote on whether to join a coalition government with Angela Merkel”.