Euro Parity Still in Play Ahead of Crucial US Inflation Data
- Common currency came within whisker of $1 on Tuesday
- US CPI data due today may prove catalyst for further drop
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The euro might have narrowly avoided parity with the dollar so far, but strategists see it as an inevitable waypoint in a slide that could leave the common currency trading well below that milestone.
The euro bounced off a low of $1.00003 on Tuesday -- its weakest since 2002 -- and is holding at about $1.004. It could come under fresh pressure as soon as today, particularly if the latest US inflation data fuel expectations of a relatively more hawkish Federal Reserve.