Bank of America Sees EUR/USD at 1.15 by Year-End Amid Market Risks
Bank of America has forecasted that the EUR/USD exchange rate will reach 1.15 by year-end, according to a research note released by the firm.
The bank's prediction is based on various economic indicators, including US macro data which remains reasonably solid with unemployment around 4% and growth running at roughly 2%. However, risks continue to accumulate for already nervous markets, including the ongoing Iran war and associated supply shock, rising concerns about the existential risks posed by AI, the apparent intractability of fiscal challenges, renewed trade tensions, and the upcoming US midterms.
On the eurozone side, activity data have surprised to the upside, but high energy prices and developments in France remain key downside risks, according to Bank of America. The firm's forecast comes as markets navigate multiple geopolitical and economic uncertainties.
The bank's year-end target for the currency pair stands at 1.15, with a longer-term projection of 1.20 by the end-2027.