With the European Central Bank (ECB) set to meet on Thursday, currency strategists are weighing up whether to join a crowded trade and short the euro or whether to go long and get comfortable with what has been described as a "seat on the Titanic."
The common currency - shared by the 18 nations in the region - has been a one-way trip south this year with the ECB expanding its balance sheet while central banks in the U.S. and the U.K. have been looking to reverse their ultra-easy policies.
The euro was trading at a two-year trough of $1.2571 on Wednesday morning, according to data from Reuters, before rebounding to $1.2621 by 7.30 a.m. London time. Weak manufacturing data from Germany just before 9:00 a.m. London time then forced it lower again to $1.2589. On Tuesday it hit a 26-month low against sterling.
The currency has depreciated 8.22 percent year-to-date against a greenback that has recently hit a four-year high against a basket of currencies. The euro is on course for its worst yearly drop since 2005 and September marked its biggest monthly fall since February 2013.