EUR/USD: Recent price action boosting the case for breaking parity - SocGen

Olivier Korber, Research Analyst at Societe Generale, suggests that the recent price action (Treasuries, Dollar Index, EUR/USD) is seriously challenging long-term patterns and is boosting the case for EUR/USD breaking parity. 

Key Quotes

“The US policy mix suggests that more Fed hikes have to be priced. With lasting policy uncertainty and potential protectionism, there are probably enough ingredients to consider the risk of massive new dollar appreciation. If the negative political surprises don’t stop there and have a far more dramatic impact on Europe, the euro could fall much more.”