A slight pullback in the dollar offered the euro some respite, allowing it to edge away from two-decade lows reached this week after surging energy prices fanned recession fears.
Risky assets, including the euro, managed gradual gains on Thursday as investors grappled with the risks of a recession and a potential pause in interest rate hikes.
Meanwhile, implied volatility in the forex market was still at its highest levels since late March 2020 at 11.2 percent, reflecting a nervous market while investors look at the parity between the single currency and the dollar.
“Parity is within reach, and one can expect the market to want to see it now,” said Moritz Paysen forex and rates advisor at Berenberg….