USD BULL – After Jackson Hole the market has started pricing in a possible rate hike in September. Also another rate hike in December, totaling 2 rate hikes before the end of the year, have not been excluded. In order to convince the market we need strong US data next week and in particular strong NFP.
EUR BEAR – EUR is still weak, and the pair EURUSD has been going up because of lack of interest in buying the USD without a rate hike in sight. Since this factor has changed in the equation, now the EUR should start feeling the pressure of bears and the effects of Draghi’s long term monetary policy.