EUR/USD Set to Plummet to 1.15 as Market Risks Mount
Bank of America is forecasting a significant decline in the EUR/USD exchange rate to 1.15 by year-end, according to a research note released by the firm.
The bank attributes this prediction to ongoing market risks, including the Iran conflict and associated supply shock, rising concerns about AI's existential risks, renewed trade tensions, and the upcoming US midterms.
While US macro data remains solid, with unemployment around 4% and growth running at roughly 2%, these risks are expected to weigh on markets, driving down the value of the euro relative to the dollar.
The European Central Bank's efforts to preserve its inflation-fighting credentials and maintain a stable economic environment in the eurozone are seen as key factors in supporting this forecast.