ML-Implode News - Fed effect smashes euro to 14-year low as dollar soars

The euro skidded over 1 percent to its lowest levels in 14 years on Thursday, as the dollar soared across the board, opening up the possibility that the single currency could reach parity with the greenback in the coming months.
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"This has been something that the market hadn't expected. We hadn't expected a hawkish message from the Fed and we hadn't expected this kind of dollar strength either," said Barclays currency strategist Hamish Pepper, in London.

"Our thesis at the beginning of the week was that the Fed would come and go and it would be a relatively priced event... In the context of investors with already long dollar positions, and noting that the dollar is already quite expensive and we're going into year end, it seemed that now was a good time to reduce some dollar longs. But we've seen the opposite of that."

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Fed effect smashes euro to 14-year low as dollar soars