EUR/USD: One step closer to parity – ING

EUR/USD broke under 1.05 on Thursday. The pair is close to the 1.0340 key support, below which would see the prospect of parity become quite material, economists at ING report.

Time to talk about parity

“The next major support to watch is the 1.0340 January 2017 low. A break below such a level would make the risk of EUR/USD hitting parity quite material. We wouldn’t be shocked to see the pair at 1.00 in the near term. Indeed, after losing the 1.05 ‘anchor’, EUR/USD volatility may well increase again.”

“A break below 1.0340 may not be a story for today though as the US session could endorse the rebound in risk assets and ease some of the dollar's momentum.”