ECB and Fed Policy Split Sets Up the Euro for a Deeper Decline.

The European Central Bank and Federal Reserve's differing monetary policy signals have set the euro on a path for further weakness, with forecasts suggesting parity with the dollar may be possible in the coming months. The ECB's decision to lower borrowing costs and signal more loosening contrasts with the Fed's decision to keep interest rates steady, widening the gap between US and European rates. Factors such as potential trade tariffs from US President Donald Trump and political turmoil in France and Germany could further impact the euro's decline, while positive catalysts like a ceasefire in Ukraine could provide some support. [Extracted from the article]