MoneyController: Does it make sense to prepare the portfolio for a possible parity of the euro with the dollar?

At the December meeting, the Federal Reserve cut interest rates. Many in the market expected this decision. However, what surprised the markets was that the cuts planned for 2025 will probably no longer be 4 but 2, so that the expected range is between 3-3.5% instead of 2.5%. According to analysts, the reasons for this change of pace by the Fed were not only due to the slight increase in inflation that occurred in the US between October and November: inflationary risks linked to the economic policy promised by Donald Trump in the election campaign were also behind it. One of the consequences has been that the euro has lost ground against the dollar: at the beginning of November 2024, 1 euro needed 1.09 dollars, whereas on 30 December it needed 1.05 dollars.

Beauty Flow" Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By Attribution 4.0 License http://creativecommons.org/licenses/by/4.0/