Flash: EUR/USD could give into safe haven drive – Danske Bank

FXstreet.com (Barcelona) – Danske Bank analysts note that heightened geopolitical risks due to the Syrian crisis would usually lead investors to turn to the greenback but the latest setback in economic data has dragged in the other direction by fueling speculation of a more hesitant Fed.

Key Quotes

“Moreover, EM central banks have been selling USD reserves to stem the currency depreciation they have witnessed.”

“We would not be surprised to see EUR/USD give in to the safe-haven drive today and head lower as an attack on Syria is likely drawing closer.”

“However, should this afternoon’s pending home sales reveal the …read more