EUR/USD gains capped around 1.17 – Westpac

The pair’s upside could find it difficult to advance above the 1.17 mark, suggested Richard Franulovich, Strategist at Westpac.

Key Quotes

“Risks in favour of a topside break in EUR/USD as markets embrace a more risk averse posture not to mention the weaker underlying USD signal delivered by Chair Yellen’s decidedly dovish speech last week”.

“Would prefer to sit out gains beyond 1.15 though and EUR/USD shouldn’t trade north of 1.17. The well-worn theme of EZ-US growth and policy divergence should reassert in due course”.