EUR/USD: Sell into rebounds to 1.12 - Westpac

Analysts at Westpac suggest that a rebound to 1.12 could be seen as a selling opportunity in the EUR/USD pair.

Rationale: 

Sell into rebounds

  • Yield spreads are now retracing from their EUR supportive stance of recent weeks
  • Positive European political events are now fully priced in and the realities of both Macron implementing reform and EU-27 negotiating Brexit are likely to become more problematic
  • Hard data releases are light into the end of the month and the slip in Germany's ZEW expectations could start to weigh on the recent outperforming Flash PMI's this week
  • USD may remain vulnerable but it is stabilising as US yields rebound from last weeks spiked low  

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Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.