Strong signs of US disinflation and bullish steepening of the US yield curve should be a EUR/USD positive. Positioning and Rest Of World growth prospects may not trigger the kind of 8% Dollar drop seen last Nov-Dec, but the Dollar should still decline.

One last hike from the Fed, plus two more hikes from the European Central Bank should keep rate differentials supportive of EUR/USD.

EUR/USD – 1M 1.11 3M 1.12 6M 1.15 12M 1.18