Tuesday saw Westpac issue a EUR/USD.....>

EURO-DOLLAR: Tuesday saw Westpac issue a EUR/USD long recommendation, with an

entry point of $1.1205, target of $1.1335 and stop at $1.1160. Westpac write

"recent EZ GDP, unemployment and, notably, national CPI data beat expectations.

Markets have priced in persistently weak EZ econ activity over the past year & a

surprise now would be further firm regional data. Political risks have not

developed. Spanish elections contained populism & returned a stronger, if not

majority, left wing Socialist Party intent on forming a gov't that will adhere

to EU agreed budget proposals. Negative Brexit risks have been pushed beyond the

immediate horizon for markets. Surprise would be a positive move towards passing

the Withdrawal Agreement & avoiding disruptive EU Parliamentary elections.

Leveraged positioning remains short EUR & the current narrowing of Bund-Tsy

yield spreads could trigger a bout of short covering. Although none of the

external risks have materialised, comfort over contained inflation should see

FOMC stress their policy patience. ISM & payroll data may underscore US growth,

but low inflation should see continued market pricing of Fed after vulnerability

shown in U.S. inventory builds & some softness in Chicago PMI & Fed surveys."