US President Donald Trump’s threat of tariffs on the European Union has sent shockwaves through the currency market, pushing the euro to its lowest level since November 2022. The warning has led traders to shift their predictions for euro parity with the dollar, now considering it a likely outcome by the end of the quarter. With options sentiment at its most bearish in seven months, the possibility of euro parity is becoming increasingly uncertain, prompting traders to position themselves for a potential change in market direction.
Source: https://www.bloomberg.com/news/articles/2025-02-03/euro-parity-is-now-matter-of-when-not-if-after-hitting-2022-low