About time? One can argue so.
The euro is being beaten down badly as the dollar continues to run rampant across the board. The way I continue to view the major currencies space is that there is just no better alternative than the greenback at the moment. The franc comes close after the SNB pivot but the dollar is still in a solid spot all around.
As for the euro, it's just one setback after another. The Russia-Ukraine conflict has added to worries about surging inflation and now we're starting to look towards a gas crisis. If Russia does cut off supplies, a recession is all but certain and the worst part? This ongoing saga will be a mainstay for European households and businesses for many more seasons to come.
It's a calamitous event that threatens the very basics of livelihood in Europe and I don't see how any of that is a good outcome for the euro. Not only that, such a scenario also risks escalating the conflict against Russia and the relative uncertainty will only add to more concerns for the single currency.
Parity beckons and much like EUR/CHF hitting the level mark, it might not stop there. A push towards 0.9500 would be a key spot to observe but with the dollar still bolstered and risk tones struggling, it's all about watching sentiment for if and when the turn might come.
