Analysts at Westpac expect gains
Westpac is out with a note suggesting clients buy EUR/USD at 1.1205 (spot 1.1218). The recommendation comes on the heels of better CPI, GDP and employment data.
"Markets have priced in persistently weak EZ economic activity over the past year and the surprise now would be further firm regional data," they write.
Westpac also highlights falling political risks domestically and via Brexit as well as a large net short in EUR/USD.
They have a target at 1.1335 and a stop at 1.1160. To me the ratioal is sound but the stop and target are tight.
