EUR/USD may hit parity as dollar shows signs of life

Buy side encouraged by dollar's recent surge

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The euro could sink to parity with the dollar over the next year and a half, as the long-awaited greenback rally finally shows signs of materialising, boosting hopes of foreign exchange markets returning to life after a sustained period of inactivity.

Market participants have been anticipating a sustained strengthening of the dollar since the start of the year, when policy-makers on either side of the Atlantic embarked on divergent monetary paths. But, while this failed to get going in the first

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