Bears drag EUR/USD down on economy and geopolitics:

Trading on the EUR/USD rate has been heavy this week, especially on the Euro side.

The exchange rate opened this week near the low from September last year at $1.3119 during Asian trading hours.

This is as investors are bearish on the EURO ahead of the European Central Bank (ECB) monthly policy meeting this Thursday where it is expected that the currency would be left to depreciate.

Adding to that are the concerns over the fragile Euro zone economy and the Ukrainian Crisis; strengthening the bearish sentiment.

“We’ve been maintaining a bearish view on the euro for some time,” said Jeremy Stretch, head of foreign-exchange strategy at Canadian Imperial Bank of Commerce in London. “The presumptions in that, in terms of the deteriorating fundamentals and that the ECB will do more, seem to be coming together quite well. The path of least resistance is for a cheaper euro.”

Meanwhile, the USD is expected to further maintain its strength on the back of the publication of the monthly ISM Manufacturing data, which is expected to show a marginal decline in manufacturing and a favourable rise in construction activity.

Presently, the EUR/USD rate is at $1.3117, after an intraday trading low of $1.3112.