Euro Parity in Play as Trump Win Spurs Biggest Drop Since 2020
- ABN Amro, ING see one euro buying one dollar in coming months
- Options traders boosted euro-dollar parity bets pre-election
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Currency traders are turning against the euro as Donald Trump’s victory in the US presidential race boosted the chance of aggressive European interest-rate cuts, driving the common currency toward parity with the dollar.
The euro tumbled 1.8% to $1.07 and headed for the worst one-day drop since March 2020 in the wake of the US election result. ABN Amro Bank NV, ING Groep NV and Manulife warn the rout will extend over the coming months to the level where one euro buys one dollar. Mizuho Financial Group Inc. and Deutsche Bank AG anticipate the currency will slide to $1.03 and $1.05, respectively, by year-end.