EUR / USD is forecast in the 1.1500 region by the end of 2021

Analysts at Bank of America Global Research (BofA) believe that EUR / USD likely to dip to 1.1500 amid likely US dollar rally, while they revise their price forecasts downwards from 1.2500 for 2021.

Key Comments:

The key catalysts for dollar strength American include:

  • Monetary policy divergence of the Fed and the ECB.
  • The potential of a substantial fiscal stimulus in the United States.
  • Analysts expect a US recovery twice as fast as that of the eurozone.
  • A still short market position in USD, particularly against the EUR.
  • A challenging outlook for risk assets given the stretched valuations and substantial uncertainty.

EUR / USD is forecast lower by 1.1800 in June versus the previous forecast of 1.2200.

The pair could fall to 1.1600 in September versus the previous forecast of 1.2400.

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