LONDON—The euro briefly rebounded back above parity with the dollar on Thursday as the U.S. currency’s recent rally ran out of steam and investors waited to see whether Federal Reserve Chair Jerome Powell would sound a more hawkish tone at a symposium this week.
A more bullish mood across markets also helped the euro, as well as currencies linked to broad investor sentiment such as the Australian dollar, which climbed 1 percent.
However, after rallying beyond parity in early European trading, by 1045 GMT the single currency was back below it, with sentiment dented by the release of a closely watched index showing business morale in Germany in August had fallen to its lowest since June 2020….