Traders Trying to Pound Euro into Submission

Quote from JamesL:

firms betting on Euro hitting parity with the dollar:

http://online.wsj.com/article/SB100...41848074392.html?mod=rss_Today's_Most_Popular
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But the question is just what the hell does "parity" mean? Who gets the last word to decide whether the two currencies are just about right at par?

I've always been perplexed by this notion of parity. For example, when the market rallies on bad news, there must have been a consensus among the titans to initially go against the trend, forcing it back into parity. In that regard, who makes the ultimate decision to say "screw the bad news, we're taking this market up!"??
 
Quote from schizo:

But the question is just what the hell does "parity" mean? Who gets the last word to decide whether the two currencies are just about right at par?
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Parity means EUR/USD=1.0
 
Quote from GTS:

Parity means EUR/USD=1.0
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:D I think both of you had good points though. What we are talking about is relative value. Both the US and EU have serious debt problems, which is worse off though?

Does anyone recall a few weeks before EU meltdown started. Golden Slacks revealed they were heavily short Spanish debt.
 
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