EUR: Multi-week risks seem to lie towards the 1.14 area - Westpac

Sean Callow, Research Analyst at Westpac, notes that the US July jobs report returned EUR/USD to the 1.10 handle but again the dollar momentum faded.

Key Quotes

“European markets are likely to be quiet for now, in the peak vacation period and with the ECB not offering much inspiration short term.

With a Fed hike too distant to drive sharp USD gains and the Eurozone current account surplus running above 3%/GDP, ECB asset purchases aren’t likely to be enough for 1.10 to be tested near term. Indeed, multi-week risks seem to lie towards the 1.14 area which prevailed pre-Brexit.”