Parity
a.k.a. At par
When two currencies are worth exactly the same, so the exchange rate is 1.0000.
In plain English
When two currencies are worth exactly the same, so the exchange rate is 1.0000.
Parity is the moment one unit of a currency equals exactly one unit of another. EUR/USD at 1.0000 means one euro buys one dollar. It is just a number, but traders treat it like a psychological wall: headlines scream "euro hits parity!", and big orders often cluster around it.
EUR/USD dipped below parity in 2022 for the first time in about 20 years. USD/CAD, AUD/USD and USD/CHF have all flirted with it at various times too.
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