So far, everything is as USD-positive (or EUR/USD-negative) as it can be. But I would caution against throwing the baby out with the bathwater.

I have written a lot recently about whether the US could have a sustainable growth advantage over the Eurozone. If so, that would justify a strong Dollar, regardless of the outlook for Fed and ECB monetary policy. I believe that such an assumption is warranted, given GDP developments. However, I do not think that the impression of a structural advantage of the US labor market over the labor market here in the Euro Area is justified.