Oliver Mangan: Euro may move towards parity with the dollar

The euro is likely to test its lowest point of the past 20 years too, of $1.04, hit at the end of 2015

The dollar has proved very sensitive to interest rates in recent years.

The dollar made large gains in April, surging by nearly 6% in trade-weighted terms against a basket of major currencies. It has been a perfect storm in foreign exchange markets. 

The US Federal Reserve has turned increasingly hawkish on monetary policy, with some its members signalling that a series of 50 basis point hikes may be needed over the summer to contain inflationary pressures.