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EUR/USD: Can the pair reach parity?
Can the pair reach 1.0000? EUR/USD had been moving lower since May 2021, as concerns kicked in that the ECB wasn’t doing enough to help the European economy starve off high inflation. Indeed, inflation continued to move higher over the next year to a recent high of 8.6% in May 2022, and the ECB has still yet to raise interest rates which are currently sitting at -0.50%. However, at the last ECB meeting, the Committee said that it would raise rates by 25bps at the July meeting. Some ECB members are arguing for 50bps. But will it be too little, too late? Two weeks ago, the theme switched from one of inflation fears ... (full story)