Nomura: The Euro's Parity With the Dollar Might Be Just Around the Corner

With the euro in free fall during the first quarter of 2015, Wall Street began to believe monetary policy divergence between the U.S. and the European Union would bring about something that hasn't happened since 2002: equality between the euro and the dollar.

Calls for so-called parity between the two currencies faded amid continued delays to interest rate liftoff, with monetary policymakers warning that the lofty dollar posed a downside risk to growth. But over the past month, statements by policymakers in the U.S. and Europe have reinforced that the decoupling of these central banks could be imminent, reigniting projections of a euro at parity with the greenback.