The Euro to Dollar (EUR/USD) exchange rate has already retreated to 5-month lows just above the 1.0600 level as the theme of divergence between US and Euro interest rates has gained traction. Credit Agricole expects two main factors to drive further losses ahead with a heightened risk that the pair will revisit parity, a level last seen in November 2022. The bank expects monetary policy will be an important source of Euro weakness. It expects that the ECB will cut rates in June, ahead of the Federal Reserve with the first cut now not seen until September, and it also expects that interest rate cuts by the ECB will be ... (full story)