Analysts at Westpac are recommending to go long on EUR/USD pair at 1.1080 levels for the target price of 1.1280, while maintaining stop loss of 1.1015.
Key Quotes
“Rationale:
“¢ Recent EZ data have beaten estimates with an apparent shift in trend from ever weaker activity reports
“¢ Latest German new export and capital orders suggest a floor may been in place for a key driver of EZ’s economy
“¢ EC has accepted Italy’s Budget proposals suggesting a less aggressive stance on annual assessments
“¢ Regional rises in yields have lifted French 10yr OATs above zero
“¢ Improvements in US-China trade stance lifts global risk sentiment and is now USD negative
“¢ EU officials suggest that there is no imminent risk around EU-US auto negotiations despite lack of a deal
“¢ Germany’s Fin Min appears to have broken the national hurdle towards the potential of an EU banking union.”
“Risks:
“¢ US-China talks are still some distance from being assured and Dec signing could still be derailed
“¢ Any deterioration in EU-US trade negotiations even if the mid-Nov. deadline appears to have been pushed forward
“¢ EC’s lower growth forecasts feed into ECB and cause a further push in accommodative forward guidance
“¢ Trump Tweets: either against US trade or Fed
“¢ EUR/USD has been tightly range bound since mid-Oct. and may fail to find a directional push.”
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