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Euro Slides to Edge of Dollar Parity as Pros Call It ‘Unbuyable’

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WATCH: “Unless euro-dollar can get above that $1.035 level, perhaps by the end of the week, it could instead drop to parity,” says Rabobank.Source: Bloomberg
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The European economy’s lurch toward recession is making traders ever more convinced the euro will drop below parity with the dollar for the first time in 20 years.

Shorting the single currency has become one of the most popular trades, with strategists from Nomura International Plc to HSBC Bank Plc telling clients to expect more losses ahead. There’s around a 50% implied probability of the euro hitting parity in the next month, according to a Bloomberg options-pricing model.