EURUSD is loosing the battle against the king the US Dollar.
Looking at the EURUSD been fighting to stay bullish however with the recent strength of the Dollar it been hard for the Euro to stay in the green. If we look the Yellen speeches she been usually dovish on rate hikes, that helped the Euro a lot in the past we also need to look at the US data that been all over the place, another way to try to figure out if we are going to have a rate hike or not is looking at the Fed Fund futures that are being currently pricing in about 80% of a 25 point hike next month December.
FOMC member at the FED can’t make up their mind of what they are doing.
The one thing it gives me a mix bias is looking at the FOMC minutes, that some of the FED members aren’t all in the same boat that makes me believe that they might vote against the rate hike. I think the rate hike later next month December is a shot in the dark, even if you take a look at how the US economy is doing base on the news is great, however the reality is a different story looking at how the ECB is handling things they are still on Draghi famous (Whatever it takes) that he mention couple of years ago.
Draghi wants the Euro Zone Inflation to hit the target no matter what.
It seems like Draghi is going to keep easing because the Euro Zone inflation is what he is always talking about. And he wants specific levels of inflation that haven’t been achieved yet. He will probably increase the easing base on the words he has used before on his press conferences. With that said the chances of the EURUSD hitting parity in 2017 are highly likely, we will keep an eye open for potential short.