Euro hits the lowest since 2003

And just like that the euro is at the worst levels since 2003 as it quickly cut through both the 2022 low of 1.0350 and the 2017 low of 1.0340. The low so far is 1.0335.

Parity is the next level of meaningful support.

The move in EUR/USD is lending a broad bid to the US dollar US Dollar The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel Read this Term.

There's no obvious catalyst for the move in the euro but a few things are being cited:

German bunds are bid, with yields down 7.2 bps compared to flat trading in US Treasuries, though that could change when US traders return from holiday in a few hours.

EUR/CHF has broken parity and the Swiss National Bank Swiss National Bank The Swiss National Bank (SNB) is the central banking authority of Switzerland. It represents the country’s monetary policy as an independent central bank and acts in accordance with the interests of the country as a whole. The SNB’s primary goal is to ensure price stability, while taking due account of economic developments. In doing so, the central bank creates an appropriate environment for economic growth.One of the main functions of the bank is to ensure and implement monetary policy. The SN The Swiss National Bank (SNB) is the central banking authority of Switzerland. It represents the country’s monetary policy as an independent central bank and acts in accordance with the interests of the country as a whole. The SNB’s primary goal is to ensure price stability, while taking due account of economic developments. In doing so, the central bank creates an appropriate environment for economic growth.One of the main functions of the bank is to ensure and implement monetary policy. The SN Read this Term looks to be out of the game

European benchmark natural gas prices are up another 6.3% and at the highest since the brief March spike. There are growing fears that Russia will cut off the continent, ensuring a brutal winter and the collapse of some industries.