EUR Could be Testing 1.16 by The End of Next Week - Westpac

EUR Could be Testing 1.16 by The End of Next Week - Westpac

Richard Franulovich, Research Analyst at Westpac, suggests that the EUR likely forges higher next week amid a probably subdued US retail sales report, payback for an unsustainably sharp April rise and a non-committal FOMC.

Key Quotes

“The Fed likely downgrades their assessment of the labour market, holds back from a balanced risk assessment and gives no strong signal that July is live, given the UK referendum will have not yet been held and pending a fresh update on the US labour market. EUR could be testing 1.16 by the end of next week.

Base case is for a commanding "Bremain" win, in similar vein to the UK general election and the Scottish independence votes, where polls badly understated support for the "status quo". Dips into the low 1.40s, likely to emerge closer to the vote should thus be bought.”