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US corporations need to 'catch the falling knife:' Pro

Currency strategist Mike Moran warned on Friday that as the euro falls, U.S. multinationals must stop playing the waiting game and start hedging better, or they'll ''catch the falling knife.''

"The corporations haven't been hedging as much as they would have liked to," Standard Chartered Bank's senior currency strategist said on CNBC's "Squawk on the Street." "They tend to take a discretionary approach and so recently they've been caught out."

Few companies have completed their hedging programs for the year, and the strengthening U.S. dollar will have a negative impact on earnings, he continued.

And Moran expects parity between the two currencies within three months.

"I think if we were to get another big move lower in the euro, its going to force these guys to stop waiting and catch the falling knife," he said.

Euro Dollar rates currency
Stoyan Nenov | Reuters

He added that it is possible for a major currency to go into free fall, leading to a situation where central bankers have to step in and take action.

"We've seen central bank activism already on the rise over the last few months whether it's in the G-7 countries or emerging market Asia or in America."

But Moran pointed out that the currencies of emerging market countries like Turkey, Brazil and Malaysia have been battered more than the spotlighted euro. The private sector debt in these countries has ballooned as a result of the tremendous amount of dollar issuance over the last few years.

"If we see the dollar go up another 10 or 20 percent, that's going to apply a lot of pressure and that is going to demand a response from all the other central banks," he added.