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Forex Flash: EUR/USD targets 1.3800 within 1-month – Westpac

“We are still targeting 1.3800 on a 1-month horizon, though suspect the EUR/USD likely to see some corrective price action first.” notes Sean Callow, a Global FX Strategist at Westpac. Berlusconi’s rise in the Italian polls and the slush fund scandal engulfing Spanish PM Rajoy have seen Italian and Spanish equities fall 8% since late Jan and peripheral sovereign bond spreads have retraced a good portion of the compression seen in the first two weeks of the year.
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