Euro Parity With Dollar Is Big New Call by Currency Analysts
- Pictet, LBBW now forecast euro falling to $1 next year
- US tariffs, German chaos spell ‘worst case’ for euro, TD says
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Currency strategists are ripping up forecasts for the euro in the wake of the US election and coming up with a new call: a slide toward parity with the dollar.
At least 10 banks — including Barclays Plc, ING Groep NV and Nomura International Plc — have slashed their calls in the past week, a turnaround from recent months when many were lifting the outlook for the common currency. Pictet Wealth Management is among those calling for parity, while Deutsche Bank AG sees a risk the euro could fall even lower. And bets in options show traders wagering against it as a favorite way to play the outlook for Donald Trump’s presidency.