Market Outlook: Could the Euro Slide to Parity Against the US Dollar?

Jane Foley from Rabobank indicated that the Euro is expected to decline further against the dollar in the coming months, potentially reaching parity. While Rabobank is not currently predicting parity, they consider it a risk and plan to reassess their forecasts after the U.S. presidential elections in November. A victory for Republican candidate Donald Trump would be more favorable for the dollar compared to a win for Democrat Kamala Harris. Additionally, the European Central Bank could further harm the Euro by cutting interest rates more aggressively. Foley mentioned that the central bank is concerned about the struggling economy of the Eurozone, particularly the economic challenges facing Germany.