Currency traders are becoming more pessimistic about the euro due to Donald Trump's win in the US presidential election, which has raised expectations for aggressive interest-rate cuts in Europe.

ABN Amro Bank NV and ING Groep NV analysts are predicting that the euro could reach parity with the dollar in the coming months.

Major financial institutions, including Mizuho Financial Group Inc. and Deutsche Bank AG, are revising their projections for the euro-dollar exchange rate, forecasting it to decline to 1.03 and 1.05, respectively, by the end of the year.

This change reflects a growing belief in the market that the euro will significantly weaken against the dollar due to shifting economic policies.