The bank changed its forecast in the interim report, and there was another notable change in the latest full report: it now forecasts the euro/dollar exchange rate to be 1.22 over 12 months.
Danske believes US economic fundamentals have deteriorated sharply as a looming crisis in confidence in US assets and recession fears are weighing on the US currency.
Danske believes that any recession in the US could push EUR/USD even higher, while any decisive policy reversal by the US administration could lead to a significant strengthening of the dollar.
*Danske Bank- the largest commercialbankDenmark, one of the leadingbanksNorthern Europe. Parent companyDanske BankGroup. Headquarters Is in Copenhagen.