The euro’s sharp fall after Donald Trump’s November US presidential election victory to below $1.02 early last month meant parity with the dollar seemed inevitable in the eyes of some analysts and investors. Many assumed that the Eurozone economy would be in the front line of a full-blown global trade war.

But the currency has enjoyed a blistering rally this month, helped by the potential economic lift to the region from a German plan to inject hundreds of billions of euros in extra funding into the country’s military and infrastructure. The dollar, meanwhile, has weakened amid growing anxiety over the health of the US economy.

On Friday the single currency reached as high as $1.089, its strongest level since the day after the US election. Many in the market are now revising their parity bets and pushing their forecasts higher.