Euro’s Five-Month Low Fuels Talk of Parity on ECB-Fed Split
- Strategists see drop to $1.05 or lower before ECB June meeting
- Escalating geopolitical risk adds to EUR/USD downside
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The euro fell to its lowest level this year as the European Central Bank looks set to cut interest rates before the Federal Reserve, fueling market discussion of just how much further it could fall.
The common currency dropped nearly 1% to $1.0631 on Friday, breaching the previous low of the year set in February and reaching the weakest in five months. It’s headed for a 2% weekly decline, which would be the worst since late 2022.