EUR/USD remains a ‘sell on rallies’ – Westpac

Strategists at Westpac have suggested fading the pair’s occasional bullish attempts.

Key Quotes

“Intrinsic EUR positives are few and far between, between what will be a heavily bloated and still expanding ECB balance sheet and questionable growth momentum”.

“But, the USD backdrop is that much more challenging, the Fed next week likely to repeat that risks persist and that there is no urgency to move on rates”.

“Open to the possibility of a run at the Aug 2015 highs at 1.17+ but if anything would prefer to be a better seller at these levels, looking to position for a probable turnaround in the US data momentum in Q2, as has been the case over many years lately after a soft Q1”.