European currency dropped further on Friday with lack of data to support it. As mentioned in previous articles, market turns to next Federal Open Market Committee (FOMC) meeting trusting in any rate-hike hints for this year. We can see permanent bullish trend on dollar with occasional corrections (as on Thursday), while euro is kept in downward pressure on quantitative easing (QE) driven trend, reaching lowest levels since 2003. We do not expect the pair to reach parity till Wednesday, the day of FOMC statement. but if there is no negative news as ‘patience’ kept or delayed rate-hike hints, worsened outlook, we can expect the dollar to continue in current trend and reach the magical $1.0000 level against the eurozone’s currency. Actual search for yields is not helping euro to stabilize and prefers different instruments to be bought. We remain bearish on the EUR/USD currency pair, but do not prefer opening new positions in days ahead of FOMC.
