Europe Wants The Euro To Become The World's Reserve Currency

European Commission President Jean-Claude Juncker just this week said publicly that their plan, their hope is that the Euro becomes a reserve currency that rivals the US dollar because Europe is tired of being depended on the US Dollar. 

In fact, he specifically mentioned the fact that 90 plus percent of European payments for oil are made in dollars he says, "Why is this? Why are we buying oil from Russia and paying in US dollars? It makes no sense!" And so Europe wants to wean itself from dollar dependence.

Currency Markets: ECB is Hawkish, The Fed Is A Dove

The European Central Bank (ECB) is saying "we're gonna keep inflation under 2 percent no matter what" and so to me they're taking opposite positions: the ECB is tighter and the hawkish bank and the Federal Reserve is a dove and therefore the Euro currency (EUR) on that basis alone is going to be stronger than the US Dollar (USD).

How The Federal Reserve Is Thinking About Inflation Right Now

The Federal Reserve is saying that they're gonna err on letting inflation break out, that they are fine with symmetrical inflation around 2 percent.