ING FX Strategy Research discusses EUR/USD outlook into today's December FOMC policy decision.
"Today’s FOMC meeting –and Chair Yellen’s final press briefing – is a relatively mundane affair. Beyond sticking to the status quo of counting on a dormant Phillips Curve to suddenly wake up, it will be interesting to gauge how much conviction Fed officials have over the transitory nature of low US inflation.
EUR/USD slid to 1.1720 yesterday, though has partly recovered to 1.1750; we expect the retrace to continue under broad USD weakness post-FOMC – and eye a move back towards the 1.1800 level (100-dma)," ING argues.
Source: ING Global Markets Research