US dollar stranglehold on global FX sets stage for euro parity

The U.S. dollar will tighten its stranglehold over global currency markets with little standing in the way of its remarkable run, and a significant number of foreign exchange forecasters polled by Reuters expect it to rise to parity with the euro in 2025. While forecasters in Reuters polls — long proponents of a weaker dollar — were mostly off the mark in their median point-forecasts through last year, additional questions, particularly on risks to those estimates, captured the currency’s relentless ascent. A signal from the U.S. Federal Reserve in December that it is in no hurry to cut interest rates further, along with inflation fears rooted in President-elect Donald Trump’s proposed tariff and tax policies, only helped to cement those gains.Read More