BofA sees EUR/USD at 1.15 by year-end amid market risks

Bank of America's analysts have forecasted that EUR/USD will hit 1.15 by the close of the year and 1.20 by the end of 2027, based on a research note they've released. Presently, US economic indicators are looking stable, with an unemployment rate of approximately 4% and a growth rate of around 2%. However, market tensions are climbing due to ongoing geopolitical conflicts, such as the Iran war causing supply shocks, growing apprehensions about artificial intelligence's societal impacts, persistent fiscal issues, renewed trade disputes, and the approaching U.S. mid-term elections.

On the Eurozone front, economic activity data have exceeded expectations, and the European Central Bank is striving to uphold its inflation-control policies. High energy costs and developments in France continue to pose significant downside risks. This forecast comes as investors grapple with a range of geopolitical and economic uncertainties.

The bank's year-end target for the currency pair is 1.15, with a more ambitious long-term projection of 1.20 by the year 2027. This report was AI-assisted and subsequently reviewed by a human editor. For additional details, refer to our terms and conditions.