Market analysts are observing fluctuations in the foreign exchange market following recent developments related to U.S. tariffs under President-elect Donald Trump. MUFG has predicted that the EUR/USD pair may fall below parity as tariffs are expected to be implemented quickly. Meanwhile, ING Economics noted that the dollar might lose momentum this week due to a return to normal market conditions, although the proximity to Trump's inauguration and a hawkish Federal Reserve narrative could limit any significant correction in the dollar's value. Additionally, reports indicate that the dollar experienced broad losses, dipping below the 108.00 DXY index amid tariff-related news, but it later rebounded after clarifications from Trump regarding the nature of the tariffs. The euro gained from the dollar's weakness, reclaiming a level of 1.0400, supported by stronger-than-expected German inflation data.