As the USA prepares for former President Trump's return to the White House, the Forex market is also gearing up for a rare event: the Euro reaching parity with the US Dollar. Strategists from Bank of New York Mellon and Mizuho believe that parity between the Euro and the US Dollar could occur after Trump's inauguration later this month. The EUR/USD has fallen more than 7% since the end of September, hitting a two-year low of 1.0226 US dollars last week. The Options market shows a roughly 40% chance of the Euro reaching parity with the US Dollar this quarter. Options contracts targeting that level surged last week. The market is looking at the situation after Trump's swearing-in on January 20 for potential catalysts. Bank of New York Mellon and Mizuho expect Europe to become a casualty of a potential trade war, as the diverging growth prospects between Europe and the USA may lead to a rare strong dollar not seen in 20 years. Both banks expect parity to appear as early as this month.