forex EUR/USD 12/16

The euro will struggle to rise significantly against the dollar unless Germany bows to pressure from the European Central Bank to raise fiscal spending to boost domestic and eurozone economic growth, BK Asset Management says. "The continuous negative yields in the [country] would offer German politicians a ready-made excuse to deficit spend without the threat of inflation," BK FX strategist Boris Schlossberg says. "The question is whether the German authorities will have the political will to do so." In the meantime, the eurozone economy will "likely remain mired in a very slow growth cycle and EUR/USD upside will be capped," Schlossberg says. EUR/USD is last up 0.2% at 1.1147.