EUR/USD Faces Downward Pressure Amid High Yields and Energy Concerns
Bank of America is warning that calm conditions in G10 foreign exchange markets are masking significant risks. The bank's analysts believe that the US Dollar will continue to draw support from relatively high US yields and lingering uncertainty ahead of key policy decisions.
This, they argue, leaves the EUR/USD exchange rate vulnerable in the near term. Bank of America remains short EUR/USD and forecasts a fall to 1.12 as US yield support and renewed energy pressures continue to favour the Dollar.