BofA Forecasts EUR/USD to Reach 1.15 by Year-End Amid Market Uncertainties
Bank of America (BofA) has released a research note predicting that the EUR/USD currency pair will reach 1.15 by year-end and 1.20 by end-2027.
The bank cites solid US macro data, with unemployment around 4% and growth running at roughly 2%, as one of the reasons for its forecast.
However, it also identifies several risks that could impact markets, including the ongoing Iran conflict and associated supply shock, rising concerns about AI's existential risks, renewed trade tensions, and the upcoming US midterms.
The firm notes that high energy prices and developments in France are key downside risks for the eurozone side.