EUR/USD's extended move lower and new multi-decade lows has got a lot of outfits discussing parity in the pair. Over the last 24 hours or so, we've had:
- Citi see an 80% chance of falling to parity in near-term
- Nomura say parity could be breached in August, forecasting a fall to 0.9500
- CIBC say parity is within reach, and a close below 1.03 today would confirm
- CBA write that, technically, EUR/USD's path to parity faces little resistance because there are no important support levels until 1.0000
Options markets have taken note, with options now implying a 54% chance of EUR/USD touching parity at some point in Q3> That's risen from just 16% at the beginning of last week.