Traders Burn Parity Bets as Euro Hits Four-Month High. Forecast as of 06.03.2025

Friedrich Merz, the recently elected German leader, has made a strategic decision to reinforce the single currency, prompting a notable rally in the EURUSD pair. The question that arises is whether this momentum will endure or if the prevailing trade tensions will hinder bullish sentiment. Let's discuss these topics and make a trading plan.Major Takeaways Germany can afford $1.6 trillion in fiscal stimulus. German bond yields have seen their fastest rally since 1990. Banks are raising their GDP