Oliver Mangan: Mighty dollar will continue to strengthen against the euro 

As long as US Federal Reserve keeps raising rates faster than ECB

The war in Ukraine is likely to continue to pose a risk for the euro, especially if there are further major interruptions or a complete cessation of gas supplies from Russia. 

The Russian invasion of Ukraine triggered a further bout of dollar strength this spring, in terms of a flight-to-quality into the world’s largest reserve currency. 

The fact that the Fed has also been the most aggressive of the main central banks in raising rates, with two 75bps hikes in the past two months, further boosted the US currency over the summer. Indeed, the dollar has now risen to its highest level in 20 years on a trade-weighted basis, making significant gains this year against a broad range of currencies, including the yen, sterling and the euro.