The European currency had no specific data on Thursday to be led by so most of the market moves were driven by dollar correction. Earlier in the session, dollar lost against all of its major counterparts and lifted EUR/USD currency pair above $1.0600.
Later US retail sales data did not support the US currency as both, the major and core gauge showed deceleration in purchasing tempo of US consumers. Only labor market data brought some optimism.
Nevertheless, these data are not essential for the next Federal Open Market Committee (FOMC) meeting, to be held on Wednesday, March 18. Rate-hike bets still prove to be the strongest issue on the market, in connection to permanently mentioned ‘patience’ in the FOMC statement.
Market will focus now only on next week’s FOMC, so we may expect slight corrections, but any change to actual bullish trend on US dollar may come with high probability only next week, on Wednesday.
For euro, still being dragged down by bearish trend, spurred by quantitative easing program, we may expect further losses below $1.0500 and we still remain bearish here. Market constantly monitors Greek issue, albeit now even permanent speeches of financial minister Varoufakis and PM Tsipras do not play huge role.
