As per Societe Generale, hopes of more rapid growth of the U.S. economy under Donald Trump’s administration and political uncertainty in Europe are the catalysts expected to strengthen the dollar or weaken the euro, leading to the two currencies hitting parity in early 2017.
The euro has struggled against the greenback since the surprise election of Trump as the 45th President of the U.S. on November 8. EURUSD has dropped about 6% since Trump’s victory, sometimes testing lows of $1.06 last seen almost a year ago. But pressure on the single currency is not about to subside according to Societe Generale, which now predicts EURUSD testing a $1.00 bottom in 1Q17.