EUR/USD Forecast: BofA Sees Pair at 1.15 by Year-End Amid Market Risks
Bank of America 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 reasonably solid US macro data, including unemployment rates around 4% and growth running at roughly 2%, but warns that risks continue to accumulate for already nervous markets.
Risks include 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 for the European Central Bank's inflation-fighting credentials.