EUR/USD: Sell into rebounds to 1.12 - Westpac

Analysts at Westpac suggest that a rebound to 1.12 could be seen as a selling opportunity in the EUR/USD pair.

Rationale: 

Sell into rebounds

• Yield spreads are now retracing from their EUR supportive stance of recent weeks
• Positive European political events are now fully priced in and the realities of both Macron implementing reform and EU-27 negotiating Brexit are likely to become more problematic
• Hard data releases are light into the end of the month and the slip in Germany's ZEW expectations could start to weigh on the recent outperforming Flash PMI's this week
• USD may remain vulnerable but it is stabilising as US yields rebound from last weeks spiked low