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Majority of FX Traders See Euro-Dollar Parity in Survey as Stagflation Threat Rises

  • More than 250 survey respondents say euro to fall as far as $1
  • Russia and European Union both set to lose from gas standoff
Updated on

Foreign-exchange traders are set to bludgeon the euro anew as the war in Ukraine and the supply-chain crisis ramp up stagflation risk -- driving the single currency to parity versus the dollar for the first time in nearly two decades.

In the view of 60% of respondents to the latest MLIV Pulse survey, the euro will eventually end up level with the greenback, with a small majority of more than 400 participants betting it will then recover to $1.15. It traded at about $1.05 as of 6:37 a.m. New York time, near its weakest since early 2017.