Market analysts are increasingly focused on the euro's potential decline against the US dollar, with predictions that it could hit parity in the coming month. Vincent Mortier, chief investment officer at Amundi, indicated that a choppier foreign exchange trading environment is anticipated, contributing to this outlook. Factors influencing this trend include rising deflation risks and a trade-weighted euro that is perceived as overvalued. Additionally, concerns surrounding trade policies, particularly in light of a potential Trump administration, are heightening market jitters. Reports suggest that while European assets may be poised for a rebound, the euro's fall to parity remains a significant consideration.
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