EUR/USD

The various summits, conferences, meetings, and announcements in the EU Zone have all disappointed. The rallies that accompany these “risk on” moves have been getting shorter and shorter each time the EU attempts to come up with a solution. The solutions have all been of the “band aid” variety, and until the area gets serious about fiscal union, the Euro will suffer more. Another thing that is weighing on the Euro is the austerity that much of the area is going through. This will have the EU in recession for the start of the year, and the ECB looks set to cut rates even further more. With this in mind, this pair should be lower. I suspect we will see 1.25 by the end of the quarter.