The euro’s surge is vindicating the handful of strategists who argued against calls for the single currency to fall to parity with the dollar.

A pullback in the dollar accelerated Wednesday, as two of its biggest counterparts, the euro and the Japanese yen, surged. The WSJ Dollar Index recently stood 0.65% lower at 99.81. That put the index on course for its lowest close since Nov.

The biggest three-day rally in the euro in over two years has sent analysts scrambling to rewrite their forecasts for the currency, as a surge in European spending and signs of a weakening U.S. economy dampens chatter about a fall to $1.

The European Central Bank cut interest rates as expected on Thursday and kept the door ajar to more, even as a looming trade war with the U.S. and plans to boost military spending drive Europe's biggest economic policy upheaval in decades.

The European Central Bank cut interest rates again Thursday to boost the struggling eurozone but suggested easing could be nearing an end and warned of "rising uncertainty" amid massive German

The chief of the European Union’s executive is proposing an 800 billion-euro ($841 billion) plan to beef up EU defenses.

Germany unveiled a plan Wednesday to exempt military spending from its strict fiscal rules and create a €500B off-budget fund to finance infrastructure spending, laying the ground for a sharp increase in the country’s defense budget.