Danske Bank: Fed cuts and trade war truce will weaken US dollar

Euro to strengthen against greenback since Fed expected to ease more aggressively than ECB

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Danske Bank: expects greenback to weaken against the Chinese yuan and other yuan-linked currencies

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The US dollar is expected to weaken against the euro over both the short and long term, as the likelihood for the US Federal Reserve to cut rates rose sharply after June’s Federal Open Market Committee meeting, according to Danske Bank.

“The market has started reversing stretched short positions in EUR/USD and there is likely more to come,” says Jens Nærvig Pedersen, senior analyst, FX and commodities strategy at

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