EUR/USD buy the dip? – Westpac

According to strategists at Westpac, the current dip in the pair could represent a buying opportunity.

Key Quotes

“EUR/USD likely handicapped at least temporarily into next week by the upcoming ECB meeting (April 21)”.

“No fresh easing is expected of course but recent ECB speak suggests Draghi will certain signal the potential for more if needed”.

“Doubt that will depress EUR for too long though given the more challenging USD near term outlook, not to mention upside risks to the advance April EZ PMIs due next week (more constructive US/China global PMIs flag upside for the EZ measures)”.

“EUR probably a buy into the low 1.13s for now, a multi-week leg lower deferred until Chair Yellen more decisively puts a hike on the table”.