Bank of America is holding most of its dollar exchange-rate forecasts steady while pointing to near-term upside risk for the euro and downside risk for the dollar. The bank still targets EUR/USD at 1.20 by the end of 2027, and it has trimmed its USD/JPY and USD/CAD calls on yen-intervention risk and a Bank of Canada that looks set to stay on hold.
Bank of America left most of its dollar bilateral forecasts unchanged, but it flagged upside risks for the euro and downside risks for the dollar in the near term.
The bank continues to forecast EUR/USD at 1.12 by the end of Q3, 1.15 by year-end, and 1.20 by the end of 2027.
Bank of America also cut its USD/JPY forecasts, pointing to shifting conditions in Japan and a rising chance of further coordinated yen-buying intervention. The bank published a related report on coordinated intervention on August 5, 2026.
The bank trimmed its USD/CAD forecast to around 1.40-type levels for the rest of the year and into 2027 as well. That call reflects expectations that the Bank of Canada is more likely to stay on hold for the medium term.
Source: Investing.com
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