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Buy the dips in USD – Westpac

FXStreet (Edinburgh) - Strategist Richard Franulovich at Westpac sees pullbacks in the US dollar as buying opportunities.

Key Quotes

“The longer term USD uptrend appears to have resumed, earlier than we had assumed, aided and abetted by a notably stronger pulse for some key US data points (durable goods, orders, core CPI and housing starts), stability in bunds and heightened Greek stress”.

“A probably decent US payrolls and a dovish Draghi (Wed) should keep the USD ascendant next week”.

“A deal for Greece ahead of their 5 June EUR300mn IMF payment will likely deliver a pullback in the USD that should be bought. We have shifted our outlook for the month ahead to bullish USD”.

GBP/USD bounces-off 1.5300, back to 1.5320

The British pound failed to breach the key 1.53 barrier and rebounded fresh lows at 1.5302 versus the US dollar in the mid-European session. GBP/USD erased some losses, although remains in red as traders digest the latest UK GDP report.
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