LONDON, Nov 19 Reuters The euro could fall to the key 1 mark in the next month before rebounding, potentially alongside other Europe assets given how negatively investors view the region, the chief investment office of Europe39;s biggest asset manager Amundi said on Tuesday.
U.S. stocks, and the dollar have surged after Donald Trump39;s victory in the Presidential election earlier this month, while stocks outside the U.S. have struggled, as investors balance the implications of higher U.S. growth with the implications of possible tariffs.
The euro has been among the biggest victims of the dollar39;s surge, falling back to around 1.05, from above 1.08 at the start of November.
We could even see parity for the euro to the dollar in the next month, but it is very mechanical, there is a lot of demand for dollars linked to the surge in U.S. assets, said Vincent Mortier, chief investment officer at Amundi, which oversees almost 2.2 trillion euros of client funds.
But then next year we believe the euro will strengthen again, he said. Amundi forecasts the common currency at 1.16 by the end of 2025.
The euro last traded below 1 in late 2022.
Mortier said extreme negative sentiment towards Europe also set the region39;s stocks up for a sharp rally on good news, similar to that seen in China earlier this year, when hopes of major package of stimulus measures sent investors rushing to snap up unloved stocks.
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