EUR/USD: sell the rallies into 1.15 – Westpac

Strategists at Westpac have recommended selling the pair on strength towards the 1.1500 area.

Key Quotes

“Risks certainly in favour of a topside break in EUR/USD, as markets embrace a more risk averse posture, not to mention the weaker underlying USD signal delivered by Chair Yellen’s decidedly dovish speech last week”.

“Would prefer to sit out gains beyond 1.15 though and EUR/USD shouldn't trade north of 1.17”.

“The well worn theme of EZ-US growth and policy divergence should reassert in due course”.

“The current run of weak activity US data for Q1 is entirely a Jan/Feb story. Since then US financial conditions have eased and the manufacturing and services PMIs for March - more up to date reads on the US have bounced”.