According to Jinshi, as ECB policymakers prepare to take more interest rate cuts than the Federal Reserve this year, discussions about the euro hitting parity with the dollar have re-emerged. Banks such as Bank of America and Germany's LBBW are war-gaming various tail risks and warning that the euro will weaken in the future if the ECB and the Federal Reserve cut interest rates at different paces. Geoffrey Yu, senior strategist at Bank of New York Mellon, said the euro may reach parity with the dollar this year and did not rule out the possibility of the ECB cutting interest rates on Thursday.
