FX Talk - an Ebury podcast

S3E15: Dollar loses steam after EUR/USD falls below parity

July 20, 2022 Ebury FX Talk Season 3 Episode 15
FX Talk - an Ebury podcast
S3E15: Dollar loses steam after EUR/USD falls below parity
Show Notes

The main talking point has been the move below parity in EUR/USD for the first time since December 2002. The pair teetered on the brink of parity for a couple of sessions, before falling fairly comfortably below it on Thursday. A divergence in natural gas prices across the Atlantic was largely to blame for the move, with last week’s hotter-than-expected US inflation report enough to drive the pair through the key psychological level. 

We have, however, seen a recovery in the euro since then, with EUR/USD moving back above the 1.02 level on rising bets in favour of a 50 basis point interest rate hike from the European Central Bank when it meets on Thursday.