The Bank of America Global Research economists expect EUR/USD to remain under pressure in the first half of the yearbefore recovering towards 1.10 by the end of the year.
The market has once again been ahead of events
“We warn that the market has once again gotten ahead of itself, pricing in the anticipated Fed cuts, and the rally is likely to weigh on EUR/USD in the near term.”
“We continue to anticipate a EUR/USD at 1.05 in the first half, appreciating up to 1.10 at the end of the year and up to 1.15 at the end of 2024still below equilibrium in the long run.”
“We assume that the worst of the recent banking turmoil is behind us, but we remain concerned about two risks to the euro in particular: the continuation of the war in Ukraine and possible market pressure on Italy from an aggressive ECB.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
