Or a real possibility: the euro at 1:1 with the dollar? The FT today cites one trader who thinks it a definite possibility. Of course, they also often quote others who hold a contrary opinion. So why do I pick up on this one? Because even though I don’t have access to the technical and currency market info, it fits in with my general reading of the respective underlying ‘macro’, and the way things could well evolve. Certainly the euro has been resisting strongly the push under the $1.20, and continually recovers ground lost. What you can say is that there is a lot of ‘volatility’ out there.

Paul Chertkow, head of global currency research at Bank of Tokyo-Mitsubishi, said a fresh impetus was needed to re-test the downside of the euros recent range, at $1.2020.

However, Mr Chertkow believes there are around $1bn worth of options in place below the $1.20 level, which could cause the euro to slide precipitously if triggered. We would have real panic, he says.

In this eventuality Mr Chertkow sees scope for the euro to fall as far as $1.10, or potentially, even parity against the dollar, led by euro-selling by US companies. American corporates have insufficient hedging ratios to protect a move on the downside through $1.20, he said. This would cause American corporates to capitulate.