EUR/USD door open for a test of 1.12 – Westpac

Richard Franulovich, Strategist at Westpac, sees the pair retreating to the 1.12 neighbourhood.

Key Quotes

“EUR should continue to ease, possibly as far as 1.1200 before it finds some stability”.

“Suspect the UK referendum on EU membership may well soon begin to check EUR/USD upside potential too”. GBP still looks expensive even after the +2% pullback from the highs. Further downside more likely than not as the referendum on EU membership approaches”.