Weakening euro set to make convincing foray at parity against dollar

Following a failed attempt at parity earlier this year, the euro may be set to make a more convincing foray at parity to the US dollar.

That is because a crucial driver for further weakness in the common currency is now on a substantially different path to that of the dollar.

One key difference this time is that the euro is facing downside pressure from investors both going short on the euro and building long dollar positions.