News & Analysis / Analysis / Will the Euro hit US Dollar parity?

Will the Euro hit US Dollar parity?

FXOpen

The Euro began to move yesterday during the course of all three trading sessions, and the move was downward toward a possible parity with an ever-strong US Dollar.

The US Dollar's strength over the past few weeks despite the economic challenges faced within the United States economy has been of great interests to commentators and analysts, especially its strength against the Euro and British Pound, despite the European Central Bank having only made one interest rate rise; the first in 11 years, whereas the US Federal Reserve has made several.

This time, however, the Euro's worsening performance can possibly be attributed to the pipeline which transmits natural gas from Russia to Germany closing for 10 days for annual maintenance.

The official line may be that the closure of the pipeline is for scheduled maintenance, however many market analysts have noted that investors and market participants are concerned that it may have more to do with the current geopolitical turmoil between Germany and Russia's respective governments and could represent a further restriction on the supply of gas to mainland Europe by Russian gas companies.

If that were the case, the genuine concern that the Eurozone could be tipped further into a recession, when it is already in financial strife, hence the weakening value of the Euro which is displaying the sentiment of a bearish market.

This week began with a low note for the Euro as it was trading down 0.8% at $1.0107 per dollar during Monday's session thanks to the US Dollar's broad gains as risk aversion gripped investors.

Nervousness surrounding the energy suppliers is now more of an issue than any announcement by the European Central Bank relating to possible measures to curtail inflation.

Raw materials are already stretching the boundaries of affordability across the Eurozone. In France, a liter of fuel for a car currently costs between 2.1 and 2.3 Euros, which is very expensive indeed, and prices for home energy are also up.

Should the gas issue be genuinely politically motivated, the bearish sentiment is perhaps not surprising, especially if this carries on until winter when natural gas usage for home heating resumes.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Instrument
Live ECN bid
Live ECN ask
Action
EURUSD
1.09720
1.09721
Trade
GBPUSD
1.27866
1.27870
Trade
AUDUSD
0.60268
0.60270
Trade
USDJPY
147.312
147.319
Trade
USDCAD
1.41670
1.41678
Trade
More
Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Market Insights with Gary Thomson: FOMC Minutes, US Inflation Rate, US PPI, Earnings Reports
Financial Market News

Market Insights with Gary Thomson: FOMC Minutes, US Inflation Rate, US PPI, Earnings Reports

In this video, we’ll explore the key economic events, market trends, and corporate news shaping the financial landscape. Get ready for expert insights into forex, commodities, and stocks to help you navigate the week ahead. Let’s dive in!

Forex Analysis

NZD/USD Analysis: Exchange Rate Nears 2025 Low

Less than a month ago, we analysed the NZD/USD chart and:
→ highlighted the key resistance level at 0.5800;
→ outlined a potential scenario involving a decline from that zone.

Now, the NZD/USD pair is trading close to its

Indices

Nasdaq 100 drops to its lowest level since January 2024

According to the chart of the Nasdaq 100 (US Tech 100 mini on FXOpen), the index opened this week around the 16,500 mark – a price level last seen in early 2024.

This suggests that the sharp sell-off in equities

CFD sono strumenti complessi e comportano un alto rischio di perdere denaro rapidamente a causa della leva.CFD sono strumenti complessi e comportano un alto rischio di perdere denaro rapidamente a causa della leva. Il 72.81% dei conti degli investitori al dettaglio perde denaro quando fa trading di CFD con questo fornitore. Dovresti considerare se capisci come funzionano i CFD e se puoi permetterti di correre il rischio elevato di perdere i tuoi soldi. Dovresti considerare se capisci come funzionano i CFD e se puoi permetterti di correre il rischio elevato di perdere i tuoi soldi.