MUFG expect EUR/USD under parity – Trump tariffs to hit quickly

MUFG assess that EUR/USD is likely to fall under parity in the weeks ahead, citing:

• prospect of Trump trade tariffs soon after January 20 inauguration
• Trump likely to act quickly to implement tariffs
• Add in the weaker eurozone economic outlook compared to the US
• that there was no euro rally into 2024 year-end indicates traders not inclined to take profits on EUR shorts

This article was written by Eamonn Sheridan at www.forexlive.com.