It sure looks like it, considering the runaway strength of the US dollar, which is undoubtedly the side in authority. The US currency has been marching higher of late, even despite the US Federal Reserve’s firm guidance that interest rates will not rise for the rest of the year. An idiosyncrasy that has left many investors and analysts scratching their heads. The impact on the euro is clear to see. It has already sunk to below $1.12 against the US currency a two-year low, and given the persistently drab tone of Eurozone economic data, it is hard to see where the catalyst could arrive from on the euro side of the equation to drive the rate back up.
German inflation data due on Wednesday would have to truly excite. Current levels for the euro possibly represent a top for the exchange rate. This week delivers a fresh interest rate decision from the US, and while the on-hold posture is thoroughly entrenched, the corresponding press conference could yield some trying questions over the Greenback’s strength.