• A larger euro depreciation would cushion the impact of tariffs on growth
  • But it would make a larger impact on inflation
  • If euro touches parity against the dollar, we wouldn't lose as much in terms of competitiveness
  • I guess we'll land with rates somewhere around 2%
  • Four more rate cuts is a meaningful scenario that I feel relatively comfortable with

Wunsch is being rather bold in his remarks here as he floats the thought of EUR/USD reaching parity. Then again, it's not an otherworldly take as many analysts are also seeing that happen next year. Here's some on that list: