EUR/USD: the pair should mark a pause before resuming its fall towards parity (ANZ bank)

ANZ expects the dollar to mark a pause before resuming its rise in 2017:

The forex quickly responded to the Trump election (which means more growth, more public spending and therefore higher interest rates). But the details are not yet known, and neither is the Fed's reaction. Therefore, the dollar should slow down its growth and consolidate. That is what we are seeing now. But we expect the dollar to continue rising in 2017.

While we are of the opinion that there are many unknowns about the policies that will be implemented by Trump, we continue to bet on parity by the end of 2017. We are targeting the 1- 1.05 range within a few months." says ANZ.