EUR/USD: Price-Action Into Year-End; 1.19-1.20 Or Bust - ANB AMRO



ABN AMRO FX Strategy Research discusses EU/USD outlook and price action, outlining 4 reasons behind the single currency's strength this week
"First, investors still strongly believe in a stronger euro.
Wal-Mart.com USA, LLC Second, the positive impact of the US tax plan on the dollar seems to have faded as there is uncertainty when there will be a vote and when the effect on the economy will be felt.
Third, a rate increase by the Fed in December is fully priced in.
Finally, the deterioration in investor sentiment that we experienced this week has weighed on the US dollar," ABN AMRO argues. 
"We expect that EUR/USD will rise towards 1.19-1.20 in the coming weeks.
If the rally runs out of steam before or around that level, it is likely that investors will take profit and close their long euro positions before the end of the year. This could result in a substantial weakening of EUR/USD in the last days and weeks of the year," ABN AMRO projects.

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