You can save this article by registering for free here. Or sign-in if you have an account.
Article content
(Bloomberg) — The euro’s slide this week has brought it to the cusp of one of the last major support levels standing in the way of its tumble toward parity with the dollar.
Euro Slide Sees Currency Approach Key Support on Road to ParityBack to video
The shared currency has slumped 1.6% over the past five days, slipping to a fresh five-year low of $1.0354 on Thursday. A key test is nearing at the January 2017 low of $1.0341, with a breach putting the euro at the weakest since it last traded at parity with the greenback almost 20 years ago.
Article content
The euro has been pummeled this year as an increasingly hawkish Federal Reserve has supercharged the dollar, while the war in Ukraine has worsened the outlook for growth in the single-currency zone and pushed up the cost of its energy imports.
Advertisement 2
Story continues below
This advertisement has not loaded yet, but your article continues below.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, Victoria Wells and others.
Daily content from Financial Times, the world's leading global business publication.
Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, Victoria Wells and others.
Daily content from Financial Times, the world's leading global business publication.
Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
Access articles from across Canada with one account.
Share your thoughts and join the conversation in the comments.
“We now expect euro-dollar to test parity,” Paul Meggyesi, a strategist at JPMorgan Chase & Co., wrote in a research note published Thursday. “The market is finally starting to accept that the Ukrainian crisis is a disproportionate shock to the euro area economy and threat to the currency.”
The odds of the parity being hit in the next 12 months have risen to about 50%, according to options pricing compiled by Bloomberg. More than $4 billion in notional value has been staked on that outcome since the European Central Bank’s latest meeting on April 14, according to data from the Depository Trust & Clearing Corp.
Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.
This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Service and Privacy Policy.
Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.