Euro Drops To 12 Year Low Against U.S. Greenback

Euro-dollar drops to 1.0560 against the dollar Wednesday and fell to a 12 year low against the U.S. greenback.

Mario Draghi, president of European Central Bank said "we can deploy and we will deploy monetary policies in a way that can and will stabilise inflation in line with our objective." Remarks made in Frankfurt, three days into it's 1.1 trillion quantitative easing program.

The lowest drop in the euro since 2003 and also against the pound, in spite of a bond buying program started in January to try to stop the deflation.

Wall Street Journal said U.S. Federal Reserve is thinking about dropping it's promise to be "patient" before raising rates in July of this year.

What does this have to do with U.S.? The euro will have low returns and quantitative easing will increase inflation thus increasing U.S. economic strength and same effects for the pound.

Barclay's, the Deutsche Bank, ING, and Credit Swisse believe the dollar will hit parity against the euro - last seen in 2002 - by end of year. Pushing "large scale capital flight from Europe and pushing euro down to 0.85 by 2017,"  analysts from Deutsche Bank.