Bank of America keeps its EUR/USD forecast at 1.15 by year-end and 1.20 by the end of 2027. The bank cites solid U.S. data and better-than-expected eurozone activity, while listing several market risks.
Bank of America maintains its forecast for EUR/USD of 1.15 by year-end and 1.20 by the end of 2027, according to a note released Friday. The bank did not change its targets.
U.S. data stays solid
The bank noted that U.S. macroeconomic data remains solid, with unemployment at approximately 4% and growth running at roughly 2%.
Still, markets face multiple risks. The note lists the ongoing Iran war and its associated supply shock, rising concerns about existential risks posed by artificial intelligence, fiscal challenges, renewed trade tensions, and the upcoming U.S. midterm elections.
Eurozone activity beats expectations
In the eurozone, activity data has exceeded expectations, and the European Central Bank has worked to maintain its inflation-fighting credentials.
However, the bank said high energy prices and developments in France represent key downside risks in the near term.
Source: Investing.com
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