Dollar gains, but market sees future euro strength

MARKET NEWS

LONDON -- The dollar fought back against the euro last week, but market participants told FX Week the correction is likely to be short-lived.

Euro/dollar traders showed no respect for the previously key parity level last week, as the currency pair wavered around the 1:1 level. On Thursday (July 25) alone the pair moved through parity more than 10 times.

"There is no significance to the level [parity] anymore, technical or psychological," said an FX trader at a UK bank in London.

The euro bega