With roughly 2 more weeks left before end of year.... SPOT EURUSD driven higher as FWDs traders are driving up the 2Week Euro fwds, EURUSD is merely catching up to the forward curve.... as to why the FWD traders are pricing such a premium to the EURO on year end? perhaps 2018 is the year EURO rallies and DXY crashing....
I dare say that rate hikes from the US are gona be less effective in keeping USD support as we start to approach that magical mark of 2%, not to mention the 10y 2y yield curve flattening is gona signal that the FED wont have much space above 2% to hike further.... we are starting to see the beginning of the end of the rate hike cycle here... and 2018 sure starts to look like an inflexion point not only in Mon Policy/Money Markets, but also to Treasuries which will definitely have a spillover effect into Equities too...
I dare say that rate hikes from the US are gona be less effective in keeping USD support as we start to approach that magical mark of 2%, not to mention the 10y 2y yield curve flattening is gona signal that the FED wont have much space above 2% to hike further.... we are starting to see the beginning of the end of the rate hike cycle here... and 2018 sure starts to look like an inflexion point not only in Mon Policy/Money Markets, but also to Treasuries which will definitely have a spillover effect into Equities too...
We live in a finite world with infinite possibilities.
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