Westpac suggests EUR/USD longs
Westpac is out with a note suggesting buying EUR/USD at 1.1350 (spot at 1.1444) with a target at 1.1620 and a stop at 1.1280.
"The USD's recent pullback, triggered by Chair Powell's comments that the Fed is flexible and patient, along with weaker PMIs signaling a waning of US growth outperformance, has further to run," they write.
The heavy dose of Fedspeak on the calendar suggests more Fed dovishness, they say, along with the associated USD weakness.
Risks include next week's vote on May's Brexit deal. If it fails it will pull the euro and pound lower. They also note that German data has been weak and that could hurt the euro.
