EUR/USD will tend to trade sideways this week – Commerzbank

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US Dollar consolidates previous week’s losses. Economists at Commerzbank analyze Greenback’s outlook.

USD’s upside potential largely exhausted

Due to a lack of new information on central bank policy, EUR/USD will tend to trade sideways this week. 

Based on monetary policy the Dollar’s upside potential is more or less used up and the market prices in faster cuts than the Fed signals with its dots.

Only the conflict in the Middle East might mean that the Dollar will be in demand as a safe haven in case of an escalation, but that doesn’t look likely at the moment.