📝EUR/USD Could Have Gone Lower On Differentials: Nordea

In the FX market, interest rate differentials have not been the main driver, and EUR/USD expectedly jumped on the news of a ceasefire. We note that even amidst bouts of flight-to-safety, the performance of the USD has been far from stellar, and the conflict in the Middle East has not at least bolstered the confidence towards the dollar in the medium term. We thus continue to expect a clearly higher EUR/USD towards the end of our forecast horizon. - Nordea