EUR/USD could test 1.16 near-term – Westpac

In view of strategists at Westpac, the pair could re-visit the area of 1.1600 in the next sessions.

Key Quotes

“Not a lot on the Eurozone calendar but EUR/USD should nevertheless firm through next week, a potentially subdued May US retail sales report, payback for an unsustainably sharp bounce in April, and a non-committal FOMC likely catalysts for EUR gains”.

“The Fed  might downgrade their assessment of the labour market, hold back form a balanced risk assessment and give no strong signal that their next meeting is live, given the UK referendum has not yet been held, hardly reasons to buy the USD”.

“The dot plot probably sticks with 2 hikes in 2016 given much of the mass of 9 Fed members calling for it in March have to shift (unlikely) but the distribution around the dots could certainly see a dovish tilt. EUR could be testing 1.16 by the end of next week”.