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14 May 2015
EUR/USD likely to see 1.15 soon – Westpac
FXStreet (Barcelona) - Richard Franulovich of Westpac, sees upside potential for EUR/USD towards 1.15, expecting the global bond sell-off along with an anticipated soft US data in the next week to push the pair higher.
Key Quotes
“EUR/USD price action remains constructive and the pair will likely see 1.15 soon enough if not next week amid likely further underwhelming US data next week (Philly, Markit PMIs notably at risk amid ongoing pressure from the earlier appreciation of the USD and the washout in the energy sector).”
“Next week’s EZ PMI and ZEW surveys are unlikely to shoot the lights out either though, with the surge in bund yields and festering Greek worries fresh risks for sentiment to overcome.”
“That aside, bund yield trends are likely to be key to EUR’s fortunes. Some risk building that the bund-led global bond sell-off may morph into generalized risk aversion that hits EUR-funded carry positions, giving EUR a further lift.”
“UK data of late painting a very confusing picture: Q1 GDP and the latest PMI and retail sales data all soft but labour market and IP data still by and large healthy.”
“Until the activity signals look less clouded EUR/GBP likely stuck in a 0.71-0.74 range.”
Key Quotes
“EUR/USD price action remains constructive and the pair will likely see 1.15 soon enough if not next week amid likely further underwhelming US data next week (Philly, Markit PMIs notably at risk amid ongoing pressure from the earlier appreciation of the USD and the washout in the energy sector).”
“Next week’s EZ PMI and ZEW surveys are unlikely to shoot the lights out either though, with the surge in bund yields and festering Greek worries fresh risks for sentiment to overcome.”
“That aside, bund yield trends are likely to be key to EUR’s fortunes. Some risk building that the bund-led global bond sell-off may morph into generalized risk aversion that hits EUR-funded carry positions, giving EUR a further lift.”
“UK data of late painting a very confusing picture: Q1 GDP and the latest PMI and retail sales data all soft but labour market and IP data still by and large healthy.”
“Until the activity signals look less clouded EUR/GBP likely stuck in a 0.71-0.74 range.”