The US Federal Reserve gave the greenback the last push, and the American currency finally fell over the cliff. The US Central Bank decided to downgrade its growth forecast for this year, revising GDP down to 2.2% from previous 2.4%. More relevant, the dot plot shows that policy makers have now the intention of rising rates just two more times this year, from previous four. Given that the FED has been largely overestimating the economic developments, market players saw an even darker picture and the dollar got sold-off.
Ahead of the release of the EU trade balance and latest inflation readings, the EUR/USD flirts with the 1.1300 level, its highest in over a month. And while the European future seems not that bright, the ongoing negative sentiment towards the dollar may see the pair advancing further ahead of the weekend.
