USD: Re-test of the 16mth 92.0 lows set in early May on the cards - Westpac

Research Team at Westpac, is biased to play for yet more USD downside in coming weeks, a re-test of the 16mth 92.0 lows set in early May on the cards.

Key Quotes

“A cautiously hopeful Fed hardly inspires, while their meaningfully more dovish forward guidance via the dots should raise alarm bells for long term USD bulls. Eurozone growth momentum meanwhile surprising on the upside, 9mth highs in the ZEW expectations sub-index suggesting the region’s strong Q1 growth outturn was no flash in the pan. 

Technical: Short term DXY looking rather soggy but with medium term momentum flat 92 should hold.”