EUR/USD: Sell into rebounds to 1.12 - Westpac

Eren Sengezer FXStreet

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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Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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