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.
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.